Many people find themselves in the unfortunate situation of having adverse or bad credit.
Those who have poor credit often find it difficult to obtain a remortgage, home mover mortgage, or purchase a mortgage outright.
Should You Remortgage For Bad Credit?
Luckily, organisations like 1st UK Mortgages are able to work with you and help secure a remortgage with a bad credit history.
We are able to access your unique situation with just a short conversation, or when you fill out our mortgage inquiry form, we can take the time to evaluate what options may be available to you.
1st UK Mortgages is committed to help you secure the remortgage you want and need, even if you have been declined by other organisations or banks because of past credit problems.
Poor Credit Remortgages Are Available to You
People who are looking to refinance or clear some or all of their poor credit through a consolidation remortgage often find it difficult to locate a lender who is willing to work with them and their unique credit situation.
Many people with bad credit are committed to righting their situation and getting back on track, as well as being prepared to handle old arrears and defaults that may have been out of control in the past but there is more cash flow to correct these issues.
Although it may sometimes be difficult to find the right lender, it is important to remember that there are now mortgage and remortgage plans available for those with credit issues and complicated financial situations.
Some people believe that adverse credit mortgages are more expensive than those offered to “prime” customers, or those with good credit – the truth is that this is not always the case and 1st UK Mortgages can help find those people with poor credit a mortgage or remortgage and lenders that are willing to work with them.
The specialist companies we work with have arranged bespoke mortgages for individuals with adverse credit which include the following situations:
What Affects Your Credit Rating?
There are a few different ways in which a person can fall into a circumstance of poor credit. Most often, people who fall behind on the minimum payments for personal loans, store cards, and credit cards see an adverse effect on their credit rating.
Missed payments such as these are recorded and become part of a report that is seen by potential lenders when people apply for a mortgage or remortgage. Worse yet, when someone falls three to four payments behind on a loan or credit card, it shows up in the report as a default and can stay on the account for many years to come.
Although defaults are a red flag to lenders, the older the default or missed payment is, the less important it becomes when a lender determines whether or not they will extend a mortgage. But, it is important to note that a number of missed payments or defaults can often cause fewer lenders to consider working with the individual.
Depending on the number of past and current missed payments, it is possible for someone to still secure the best possible mortgage or remortgage with poor credit
What About County Court Judgments & Mortgage Arrears?
When lenders consider applications for those people with poor credit, they often measure these credit levels in units. A specific type of credit problem is assigned a point value generally between 1 and 3 – sometimes higher depending on the lender or mortgage provider’s views on the severity of different credit problems.
On this point scale, recent county court judgments and mortgage arrears usually rate the highest in points, meaning they are the most severe. It is important to note, however, that all lenders are different in how they handle individuals with poor credit – while one mortgage provider may see a very negative score, another may see a moderately negative score and may be willing to work through potential problems with the applicant.
Because of this, it is possible for someone to obtain a remortgage with arrears and bad credit. As you may already be aware, having bad credit is often a time sensitive issue – it may be in your best interest to consider obtaining a remortgage and using the funds raised in this manned to set finances straight.
What If You Have Been Refused Or Declined A Remortgage?
Being rejected by a lending institution or bank for a remortgage due to bad credit can be a hard pill to swallow, not to mention embarrassing and often demoralizing. While this may be a disheartening experience, it is important to remember that lenders vary widely from one to the next on what they consider truly bad credit and who they are willing to work with when it comes to a mortgage or remortgage.
Your personal mortgage advisor through 1st UK Mortgages can help to compare remortgage deals and partner you with a lender who understands your unique credit situation. Just because you have been rejected in the past does not mean no lending institution will be willing to help you or that you do not qualify for a remortgage.
Although having bad credit is not an ideal starting point when applying for a mortgage, it is possible to secure an adverse credit remortgage plan that will work for you.
Why Choose 1st UK Mortgages As Your Adverse Credit Mortgage Broker?
When an individual carries poor credit, navigating the already complicated world of mortgages and remortgages can be difficult. This area involves various, detailed criteria that is very important to finding a lending institution who is willing to work with an individual with less than perfect credit.
When the details become overwhelming, we are here to help and give you a head start on finding a great mortgage lender. Our knowledgeable mortgage advisors will review your unique credit situation and be able to partner you with a lender who is willing to work with your client type.
Our advisors will provide lenders with the information they need to make an educated decision about your mortgage, acting as a liaison between you and the mortgage institution. This process means less stress for remortgage applicants and a higher chance of securing a mortgage plan that is perfect for you.
If you would like more information or are interested in finding out what options are available, contact 1st UK Mortgages today and our mortgage advisors will walk you through the application process.
Friendly team of brokers with a great panel of lenders:)
easy to use site and fast response from the broker to my enquiry
My situation was always complicated. It took time and patience but we got it done in the end. The application could have so easily been rejected but 1st UK did a really good job.