A wide range of specialist mortgages compared to ensure we find the deal you qualify for right now. Simple.
Key to our success has been our ability to help when often others have failed. This comes from our understanding of specialist products designed to help those with a less than perfect credit history and our service in helping you with your application from start to finish, working with lenders whilst making sure things run smoothly and stress free.
A wide range of specialist mortgages compared to ensure we find the deal you qualify for right now. Simple.
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You can have peace of mind that 1st UK have the knowledge required to help you to get the perfect mortgage or loan that will fit you like a bespoke suit.
Our company specialise in mortgages for buyers with impaired credit, and can certainly help you to acquire the mortgage or remortgage that you want, whatever your credit ranking. We are also specialised in helping self-employed people find the right mortgage for their specific needs.
With many years of experience within the UK mortgage sector, you can certainly rest assured that our company have the knowledge required to assist you to obtain exactly the ideal mortgage for your particular needs.
Access mortgage lenders that have rates and terms very similar to typical high street banks.
Do not burn away your home equity on unnecessary costs! 1st UK Money does not charge ludicrous fees like other brokers. Use your remortgage to pay off an existing mortgage at a poor rate, release equity to consolidate debts or even buy another property.
Don’t waste time and effort applying for loans you’re not going to qualify for!
Get help selecting the secure loan with the lowest rates and minimal fees, with an application that will meet the lender’s criteria. Did you know there are many more lenders with great rates you won’t find on the comparison sites?
Discover mortgage lenders that have an open-minded view of your credit past. Access interest rates and terms very close to prime products.
1st UK Money has access to new and old lenders who do not feature on the well-known and far from impartial comparison engine sites. Get help preparing a mortgage application that goes straight through.
You are considered to have ‘bad credit’ when financial mistakes recorded on your credit report affect your ability to get credit. For example, you could have an adverse credit history caused by missed payments, defaults or County Court Judgements.
Each negative marker can reduce your credit score and prevent you from getting the best deal. At 1st UK Money, we have access to a wide range of Specialist Lenders who will pay more attention to your ability to pay in the future than to mistakes made in the past.
1st UK Money is a good example of a bad credit mortgage broker with many years of experience.
There are two main reasons you would refinance your home; the first and most common is your existing discounted term or fixed rate term has run out, and you’re on an unfavourable rate. The second reason is that you need to raise money.
If you already have a first charge lender on your home still offering you an excellent rate (a loan underwritten when you had excellent credit), you may be much better off getting a secured loan.
A homeowner loan with bad credit will allow you to keep the discounted rate from your existing lender and release equity with the help of a second charge.
A mortgage broker for bad credit can help you apply for the right mortgage and not apply for mortgages you will not be approved for.
There are some types of properties that lenders are wary of getting involved with. For example, a property with a thatched roof, one that has an outbuilding on the land, or a property that’d be difficult or maybe even expensive to get buildings insurance on. Those can present as higher risks to lenders.
Therefore, it’s not always you that could be being rejected but rather the place you want to secure your loan against. Mortgages are tied to your property so if that’s flooded or starts to crumble, the value of the home will decrease and so too will the amount of the loan secured against it. Therefore, there’s a higher risk to the lender.
For home lenders, they need to be able to make sure their business is profitable. They can’t do that solely on 90% to 100% LTV deals, as there’s a very low-profit margin. If someone on a high LTV defaults, it’s unlikely that repossessing and selling the home will even cover the costs let alone turn a profit. For that reason, lenders are looking for diversity. They have some customers on high LTV, but to diversify, they need customers on a lower LTV to decrease their risk across their portfolio.In other words, they need people who have an adverse credit history.
To find decent deals, even those for poor credit, you need to know about the Loan-to-Value Ratio. It’s used by UK lenders to determine how much they’re prepared to lend you and will learn how much of a deposit you will need for any product.
Getting a mortgage with adverse credit could involve a mortgage application to mortgage lenders, not high street lenders. When you apply for a mortgage, you can expect higher interest rates, and you may need the help of a mortgage broker who is authorised and regulated by the financial conduct authority.
The broker could advise you to go to a check my credit website before the mortgage application. A county court judgement could reduce your bad credit mortgage options as well as other credit problems.
A home buyer has plenty of poor credit mortgage options depending on the size of the deposit they can put down. There are many more mortgage deals with a larger deposit for people that want to buy with smaller loan payments.
Sensible use of a credit builder credit card for several months before the application could help to show a history of no late payments.
Your home may be repossessed if repayments on your mortgage are missed or paid late. It’s crucial you can afford to pay the loan, and your employment status and credit rating should be maintained.
A low or below market value purchase price may help a building society or other specialist lender from the mortgage advice bureau make a positive lending decision.
A debt management plan, multiple ccjs or IVA could seriously impact your ability to climb the property ladder. The worse your credit score is, the more likely that broker will want to charge a fee. The factors on your credit reports could be a guide for eligibility with certain banks. A mortgage calculator could be a great guide to your applications.
3rd party agencies like Experian, Call Credit and Equifax, showing IVAS as well as other records that lenders.
The higher you can deposit, the less risk you pose to lenders, therefore, aim for no less than 15% deposit. To increase your chances of being accepted, consider increasing your deposit to 30% or more if you can. The more you can put down as a deposit, the less of a risk the lender is being asked to take on.
For someone with a good credit history, they’d be able to access deals with 90% to 100% LTV. With bad credit, prospective lenders offers are going to be below 85% LTV, although applying for a 70% LTV will increase your likelihood of being accepted.
If your credit history is really poor, there will still be options worth exploring, but you can expect it to increase the amount of deposit you’ll need, based on your level of risk to lenders.
As adverse mortgages aren’t a specific product, you’ll need to tweak your search so that you’re looking for 70% LTV, or below. This will limit the number of lenders offering above 70% LTV which you’d more than likely not be suited for.
As an example, if you’re looking to purchase a home loan for a property value of £225’000, you’d be looking to borrow £168,750 which is a 70% LTV home loan. If you’ve only a few minor issues with your credit report, you could look for 85% LTV. Just tweak the amounts to your search criteria.
To find out which are a good fit for you, you’re best to consider the amount you can comfortably afford to put down as a deposit, as well as the amount you can comfortably afford to repay each month as that will be determined by the interest rate you’re offered.
For those with a poor credit history, perhaps because of financial difficulties in the past, which has now changed and you have a good income, it’s not going to matter. The fact you have a good income coming in now doesn’t deflect from the issue that you’ve defaulted on previous loans and/or credit agreements.
The truth will remain that there are issues on your credit files showing that you have a history of defaulting, or paying late, or not paying at all. That raises concern with lenders and increases your risk level.
Your risk level will always be given more weight than the amount of income you have.
Most people are baffled when they think about an application, but it’s not difficult. The first thing to do is find out what’s on your credit report. Then it’s all about making you as credit-worthy as possible.
These are the frequently raised questions for adverse credit mortgage product:
A guarantor is considered security because someone else is willing to take on the responsibility of making the payments if you don’t.
The realistic answer is yes you can, but it’s not advisable. You’d be putting someone’s else’s home up as collateral and therefore at risk should you default on your home loan repayments.
A more attractive option is to consider using other assets. It could be that you have a vehicle that could be sold and you can downgrade to release some capital to raise your deposit amount. Or you could have other assets such as investments, savings, perhaps securities like home equity in another property you lease as a landlord.
Investments can also be used and put up as collateral, but more than anything they show lenders that you’re responsible with money and if you need to back out of the deal, you have other ways of paying for the monthly payments, without requiring selling the property for the full market price. The housing market is not consistent price wise. What your home’s worth now will change years from now. So if you’re taking on a five-year fixed term, the loan amount may be higher or lower at the end of the fixed-term period.
Because of the housing price fluctuation, as well as your current position of having adverse credit, it’s unlikely worth you tying into a five-year deal. You only need long enough of a mortgage deal for you to do some repair work to your credit files. Two years should be sufficient. By the end of the two-year agreement, provided you’ve taken steps to boost your credit score, there’s no reason you can’t be eligible for a better remortgage offer.
Your income will be considered too. The rules and regulations surrounding these products are strict. This is because these are the financial products that caused the global financial crisis. Too many loans were made for residential and commercial properties before the financial crash, which pushed up house prices. House prices rose faster than annual salaries, and eventually, people couldn’t afford the repayments. For a while, they could still borrow though. In the financial sector, there’s an entire market devoted to people with a bad credit history. It’s called the subprime market.
Subprime mortgages and subprime-backed loans were the primary cause of the financial meltdown on a global scale. For that reason, lenders allow borrowing of 3x your annual salary now, although 4x your salary is possible, albeit riskier. Five times your salary will only be considered when you have a high salary coming in, for which you’ll be paying a hefty chunk towards the repayments.
Disposable income is also something to consider. If you can consolidate debts to free up some monthly revenue that could go towards your mortgage repayments, then do that. The more disposable income you have, the higher a monthly payment you can make, and depending on how you go about it, you could find that consolidating debts into what’s considered a bad credit loan, could give you some extra capital to put down on the initial deposit, thus lowering your LTV ratio and making you more attractive to lenders.
This is something that requires a long-term approach. You need to start right away though. No more missed payments on any of your accounts, because they will be entered into your credit files with Experian, Equifax and Call Credit. Keep up your repayments on all accounts, including your utility bills, any mobile contracts, subscription services (inc. TV).
As soon as you find yourself beginning to struggle financially, assess your financial situation and get rid of any paid subscriptions that you do not need. Like your subscription TV, or a premium phone contract that can be switched to PAYG.
Or if you’re out of the contract period for any service you have, like phone, Internet, TV, premium banking services – consider cancelling and if that’s not an option, then switching to a more attractable deal.
There are some services that when you apply for them, will credit score you. Utility companies do this if you’re asking for a credit meter to be installed to replace a PAYG meter, and so too will the majority of companies offering any type of contract.
They’ll want to assess your risk to make sure you’ll be able to keep up repayments for the duration of the contract.
There are financial products available designed to help you repair your credit. Or even just build it. For young people who have never had credit, they will have a problem getting approved for a first-time mortgage, just because the lender has no data to use for risk assessment. If that’s the case, then some credit history needs to be developed.
A good first step is to get yourself onto the credit radar. One of the fastest ways of doing that is with a prepaid credit card. There’s no credit check required as there is with mainstream cards. So, if you’re lacking credit history details, don’t go to mass market lenders if you know you’ve little or no credit history for them to check. One option open to you is to use a prepaid card with the Credit-Builder Add-On. It won’t fix bad credit but it’ll build your positive credit history by reporting your account is held in good standing. Provided you keep in good standing anyway.
Fixing your credit rating is all about getting credit approved and then maintaining your accounts without ever defaulting. Getting credit approved is all about approaching lenders with as low a risk potential as possible. A mobile phone contract of £10 to £15 per month over a 12-month term is more likely to be approved than applying for a car on hire purchase. The more accounts held in good standing and more recently than previous files reported for defaults will improve how your file looks to potential lenders. The idea is to make you look like a responsible borrower and good at money management.
The better your credit file shows you managing your finances, the better your credit score will be and the more attractive you’ll be to lenders.
You need to be on this to improve any chance of obtaining credit as it proves you’re a UK citizen. You can go https://www.gov.uk/register-to-vote and as the link says, Register to Vote. If you believe you’re already registered, then at least check your details are accurate. You may have moved your address and have your old information still recorded while your other accounts like your bank have updated details. Check your details are correct on the Electoral Roll and if you’re not on it, then get yourself registered.
At 1st UK we understand how lenders assess risk levels. We work with various financial institutions, brokers, and specialist remortgaging firms. Still, most notably for you – we know the level of risk our partners are comfortable with.
Therefore, we’re in a tremendous position to help you by telling you straight what your risk level will be assessed as and the best type of product, designed for customers with adverse credit ratings and help you grab the best deal on the best possible terms.
With over ten years of experience 1st UK has a massive subprime mortgage lender list, and one thing that’s been learned is the best mortgage lenders for bad credit often changes, and the good ones sometimes run out of money to lend. An example of a great adverse credit mortgage broker is one who rings up the underwriting team of an adverse credit mortgage lender they know and sounds them out on a case before even an application has been filled in.
1st UK has a subprime mortgage lenders list that is likely much longer than other mortgage brokers for bad credit. Their lender relationships are so strong that some bad credit mortgage lenders can give us access to new products before they are officially launched.
You may have spoken to other bad credit mortgage brokers who made many promises about getting you a subprime mortgage, but they refused to ask you the tough questions about your income and your credit history.
Adverse mortgage lenders have particular criteria where they care a lot about some things and don’t care much about other things. The way to fit you into a deal from our list of mortgage lenders for bad credit is to find out every bit of relevant information – even if you think the questions are a bit silly. There is no such thing as a guaranteed mortgage with bad credit, as all poor credit mortgage lenders care a lot about your income.
Another thing a good mortgage broker for bad credit will always ask you is if you have a new partner that could go on the mortgage application. Their income and potentially better credit rating may make a significant difference to your mortgage applications and the type of sub prime mortgage lender that will accept you.
Our staff work 9 am till 9 pm, seven days a week. Between those times, we’re on hand to offer you a free, no-obligation advisory service for home-owner loans, including bad credit mortgages and remortgages. A mortgage is probably the most significant financial commitment you will ever make; that’s why we offer a free no-obligation quotation service. If you are happy to proceed with us, once you have reviewed your quotation, then we will help you complete the application from start to finish.
Remember, with thousands of UK Lenders; it represents a daunting task for you, which is why we strongly recommend getting in touch for a free one-to-one consultation. Our brokers are there to take the mystery and chance element out of finding the right option for you. Remember, we can often help where others fail. All enquiries are completely confidential, and you are under absolutely no obligation to proceed at any time. We charge no upfront fees at all, unlike some of our competitors, offer a nationwide service and are happy to talk to you at a time to suit you.
If you’ve got yourself in a mess with missed credit card payments and got some form of poor credit rating, you may think the bad credit mortgage rates you are offered will may your mortgage payments not affordable.
The good news is that the lending criteria of many low credit score lenders and mortgage providers will lend at interest rates close to the main high street bank as long as they are confident about your ability to pay.
Adverse credit mortgages from specialist bad credit lenders can be as little as 1% higher interest than other mainstream lenders.
The main problem with your adverse credit issues is mortgage arrears. Before a mortgage adviser lets you put an application into some bad credit lenders, they will strongly advise you clear your mortgage arrears.
As another example, first time buyers can go to the best mortgage broker with some historical bad credit from some unsecured finance agreements and get a good deal from many lenders as long as they have a good deposit and good personal income.
As a lender uses one credit reference agency and there are three main credit reference agencies, your credit record and credit issues may be different with different lenders; this is where the choice of adverse credit mortgages is crucial. Some people may indeed have to pay higher interest rates, but using the debt to income ratio will ensure your outstanding debts are serviced.
Fixed rate mortgages and variable rate mortgage options are still available to people that are bad credit applicants. The residential mortgage process can happen quickly with direct deals as long as all your credit agreement details are disclosed early.
People in debt management plans with poor credit scores are more difficult to get a mortgage application approved as it’s not just the overall credit score. It’s the fact a 3rd party is managing the existing debt.
Most lenders in the UK mortgage market will take a view on missed credit card bills, late payments and other multiple credit issues. The main problem is people want to apply to most high street lenders, but this is usually the wrong lender; niche lenders are much more likely to help people with difficult financial circumstances.
You may need to set aside time for your bad credit mortgage work, as the mortgage cost will be much lower if you get the paperwork together at an early stage. How much deposit you have available can be key to your mortgage approval and in-depth knowledge of the eligibility criteria and mortgage application process. The UK regulatory regime will help make sure your mortgage debt is not too big as well as all the specialist brokers in the marketplace.
If you have some bad credit that is nearly 6 years old which is still contributing to your low credit rating, your mortgage advisor may suggest you can get a good mortgage deal by waiting for the defaulted credit accounts to disappear from your credit profile.
Your choice of bad credit mortgage broker can be helped by looking for willing ones to offer a no-obligation chat and don’t talk about an upfront fee. If you can get money from family for a higher deposit, the will make the problems with income multiples and stable income less challenging. There is no one product fits all. Your mortgage offer will come from being assessed on a case by case basis.
What if my bank statements show financial commitments to multiple lenders at uncompetitive interest rates?
It’s never good to see people constantly using other lenders that have caused a credit issue like the dreaded payday loans mafia. The repayment history lenders tend to see as relevant and sometimes concerning. If a few payments missed had resulted in you going to a debt management provider, some standard mortgages lender criteria will be outside your reach.
In short, you need a secured finance specialist and a niche lender. The best lenders with a fixed rate will turn you down. Your individual voluntary agreement will severely impact the mortgage product you can qualify for as most mortgage terms and other eligibility criteria make borrowing impossible. It may help if you can get a family member with their own home to be a guarantor for the non standard mortgage or home loan. It’s even more difficult if you want a large loan with a small deposit, and the chances that you can realistically afford the high risk new mortgage, even with a gifted deposit, is still low.
1st UK money has an in-depth knowledge of specialist mortgage providers as fewer lenders accept less than perfect credit checks. Maybe you’re a first time buyer with a less than good credit rating because of the credit crunch that wants to borrow money for a new flat or house.
The last thing you want to do is make multiple mortgage applications. You need all the past credit issues, including paying bills late, county court judgements, defaulted car finance or even past bankruptcy discharge all disclosed upfront.
Because you are putting a deposit down, you don’t want your property repossessed. You want to pass the affordability checks, get a bigger deposit and get your home purchase right the first time with the lowest monthly repayments.
People with bad credit can also forget about moving costs and additional fees, so it’s important to get the correct legal information and the right advice. Traditional building societies may not be willing to help these home movers.
One of the problems is that you may need to act fast as lenders cap the funds they lend, and the lender’s criteria that suits you may stop lending. To improve your chances of getting a favourable deal, you should be willing to pay a broker fee and get on the property ladder sooner.