Can you get a mortgage with bad credit.

Bad Credit is not the end of the world. But it is not the best way forward.

People have lots of different backgrounds, stories, beginnings and walks of life. And you are saying of course they do. Which means people come to us with lots of different financial backgrounds. And we try an help them get what they want. So can you get a mortgage with bad credit.

Well the answer is maybe. But you may think it is impossible, so you should speak to someone if you do have bad credit as it may not be impossible.

So how do you know you have a chance?

Firstly a lender is looking at you as a responsible financial person. They want to lend you money for a mortgage, but they want to make sure that that “investment” is something that will be safe and you will be able to pay it back plus interest.

It’s difficult making lists of these are yes’s and these are no’s. So have you got defaults on credit cards, or have you got a debt management plans. That could be ok. The lender will look at the whole picture. Like how long have you been paying the debt management plan. Have you kept up with all the other parts of your life. Mobile phone, car insurance, credit cards… all of these reflect on your credit score and therefore on the financial picture of you the lenders will look at.

This all sounds positive and there are not so great things. There will not be that many lenders, you will not have a lot of choice on who you can lend with. Some lenders are more open and others are more narrow with the people they want to lend to.

Also your interest rate is going to be not optimal. And that is putting it lightly.

You may have to put a larger deposit down than normal. You are potentially looking at 20% deposit rather than a 10% or 5%. And you probably wont be able to lend as much. Once again it is all about safety for the lenders.

Speak with someone you trust and tell them the full truth of your history – Even if it is not the right time, it may realise a future for you to aim for.