Consolidating mortgage arrears
), any number or value of defaults or CCJs if they are over 2 years old, and even bankruptcy if discharged for 3 years.
If you have much more severe credit history issues than this, or the problems are within the above time frames, hen you’ll most likely need 20-40% deposit/equity.
With those looking to get a mortgage with bad credit history, if you only have 10% deposit or equity things are VERY strict and you’ll struggle with anything worse than small defaults (under £100) or one or two late payments.
With 15%, there are lenders available offering bad credit mortgage loans with much more flexibility, accepting late payments up to status 3 on a credit file at any time (even last month!
Usually, a borrowing limit of 4x salary is a common figure, so if you earn £20k, you could borrow £80k, although some lenders go to 5x, and at times more for higher earners.
Assets To get mortgages with bad credit, if you have other assets, such as equity in other properties, businesses, investments, savings, then these can show a lender you have other means to support yourself and their loan, should you fall into trouble.
It’s not always based on the monthly payments, which is at times frustrating especially for those consolidating debts from £2000pm to £1200pm for example, where the £1200 is deemed affordable even though the borrower was keeping on top of the £2000!As such, I have decided to compile all the most important information in one place, so anyone that wants a mortgage with bad credit in the UK will have a good idea about what is possible for them.We also offer a platform for visitors to enquire with the specialists and find out if they are eligible.We receive more and more requests for information and advice on bad credit mortgages everyday, and it seems the demand for help is massive.There is a LOT of info online that is old and outdated, spam, and just plain wrong.