When you are looking to get on the property ladder and buy your first home, it is likely you will need a mortgage. A mortgage is a long-term loan to buy a home. Here at Airborne Mortgage Solutions, we specialise in finding the right mortgage for you. In this blog, we are going to have a look at getting a mortgage with bad credit.
Can First-Time Buyer Get A Mortgage With Bad Credit?
Although having good credit is certainly preferred when it comes to getting a mortgage, it doesn’t mean it’s not possible with adverse credit. People usually believe that you need to have a perfect credit score because it is frequently portrayed and it can give you more options.
You can still get a mortgage even if you have bad credit, but you may have to pay more in interest and put down a bigger deposit. There are mortgages for people with bad credit, and some lenders focus on giving these kinds of loans. These are called subprime mortgages, bad credit mortgages, or adverse credit mortgages.
Because Of My Bad Credit Mortgage Lenders Won’t Accept Me
Contrary to what many people think, there is no “blacklist” or minimum score you need to have to get a mortgage. This is different for each lender, and there are other things they will look at when you apply for a mortgage. Some lenders only work with people with a bad credit history who now need a mortgage. There are lots of options you can try even with a bad credit score.
Many things could cause you to have a bad credit score. If you have bad credit, your mortgage rates may be higher, and you can’t go straight to a specialist lender. Because of this, it’s best to talk to a broker, who will look at your situation and find the best mortgage product for you.
My Partner’s Credit Is Bad, So I Can’t Get A Mortgage
You’ve probably heard the term “financial association.” When you have joint finances or a joint credit account with someone, you are financially tied to them. The people you share money with will show up on your credit report. As long as you don’t have any joint loans or credit cards with your partner, their bad credit won’t have a direct effect on your mortgage application.
If you are financially tied to a partner with bad credit, the good news is that there are lenders who will still look at your application, whether you are buying a house on your own or looking for a joint mortgage. Mortgage brokers work with a variety of bad credit mortgage lenders who offer solutions for people with bad credit. So, even if your situation is complicated, a broker may be able to help you find a mortgage.
My Chances Of Approval Will Go Up If I Make Several Applications
If anything, it’s the other way around. Every time you apply for credit, it will show up on your credit report, which other lenders can also see. And if you make a lot of applications in a short amount of time, it can look like you need the money badly and are less likely to pay back the loan on time.
This can hurt your credit score even more, so if you do decide to talk to different lenders, do your research ahead of time and spread out your applications. A lender can also get a Decision in Principle for you. This is a statement that, based on the basic information you give, they will lend you a certain amount. This won’t hurt your credit score, but it also doesn’t mean you will necessary get a mortgage in the future.
A safer option is to use a mortgage broker who can look into your options for you and help you apply with the right lender based on your situation.
Even if you have no credit history or a bad credit score, that doesn’t mean you’ll never be able to get a mortgage. When you talk to a mortgage advisor about your options, you can see what you can do with a mortgage even if you have bad credit. A broker can also search the whole market, including specialist lenders, to find you the best mortgage deal.
So if you’re wondering, “Can First-Time Buyer Get A Mortgage With Bad Credit?” The answer is yes! Talk to one of our advisors at Airborne Mortgage Solutions about the myths surrounding bad credit and mortgages.
Get in touch at 08000 835209 or on our website today.