Yes. It is possible. But it all depends on how severe the issues were and how they affected your overall record. This can limit the number of lenders who will consider your application.
Before you can apply, you will likely need to spend some time fixing your credit score. To attract more lenders, this will allow you to save time and build up a solid deposit.
How Do You Get A Mortgage With Low Credit In The UK
Here are the steps required to apply for a UK mortgage with bad credit.
Download credit reports: If your credit score is low, it’s worth getting it fixed. Download your Credit Files from all the UK’s major credit reference agencies. Make sure you challenge any inaccuracies and request that outdated information be deleted.
Get your documents ready: Along with your credit file, you will also need to prepare other documents to apply for a loan. These documents are similar to what you would need elsewhere in the UK. They include proof of your address, income proof, and ID. The guide to a mortgage with defaults applications has a complete list.
Contact a mortgage broker It’s better to speak to a bad credit broker who is familiar with the UK mortgage market than to approach a lender directly. They can help you navigate the process and identify the right lenders for you.
We can help you with this! To match you with a qualified mortgage advisor who is experienced in the Northern Irish market, our free broker-matching service will assess your situation and match you up with one.
Are Any Geographical Restrictions In Place?
Although no restrictions per se, certain areas in the UK make it more difficult for people to get mortgages. However, this is similar to the rest of the UK but not on the same level.
Rural demand is, for example, less than it is in larger cities like Bangor or Belfast. To avoid repossessions, lenders are less cautious about offering mortgages.
Lenders might charge higher interest rates to applicants with poor credit records in rural areas of the UK to lessen their risk.
If you are looking for a mortgage in this area, it is important to work with an experienced broker who has good credit. These brokers could make all the difference in getting the mortgage that you need.
Which Credit Cards Might Be Accepted?
The UK’s credit policies are typically the same as the rest of the UK. However, they may be slightly more strict.
Each credit issue is not the same and each lender will have a different view of what is acceptable or passable. It is not surprising that some events are considered more severe than others.
Here’s an example:
- County Court Judgements
- Individual Voluntary Arrangements
All of the above would almost universally be deemed the most severe credit issue. If such issues have occurred within the last 12-24 months, most lenders won’t accept applications, in some cases even much longer.
A lender might be more inclined to consider your application if you are behind on payments or have not paid your utility bill. This is especially true if there is a regular income and a large amount of deposit.
Do not panic if you have severe credit problems. You can still get the mortgage that you need from specialist lenders with expertise in these types of lending requests.
It is important to be affordable. A lender will appreciate that you can afford the mortgage payments have built up your credit score and made a deposit.