Mortgages For Low Credit Scores

Many of us are acutely aware that trying to get a mortgage if you have a low credit score, or have unfortunately incurred some bad credit, can be a tricky task. Fortunately many of our customers avoid being disappointed and successfully take out their mortgage or remortgage whilst having a low credit score - even if they have already been let down elsewhere.

This is because we believe applications should be manually assessed and a mortgage agreed through looking at the full picture rather than just relying on automated `score based` decision making.



For over 30 years our clients have successfully obtained a competitive mortgage in all sorts of scenarios - so get the facts and figures for your mortgage options for free and without obligation today. Please complete our short:
No Credit Check Online Enquiry.
Alternatively call our UK based mortgage team for free on:
0800 298 3000 or dial:
0333 003 1505 (mobile friendly) and discover quickly and efficiently the mortgage amounts, rates and repayments available for you.

Often having a lower credit score is not even your fault - but has occurred due to an oversight, or because of external factors you do not control such as; a cash flow challenge, a period of unemployment or simply being one of the millions of people who find themselves over committed on credit. As one of the longest running UK mortgage businesses our extensive low score mortgage lender plans do not rely solely on your credit score to make a positive lending decision. It is surprising just how many consumers one way or another find that they have a low score. In fact not just bad credit, arrears or defaults can lead to a low score - a lack of credit or simply not being on the voters roll can also reduce your credit score.

You may be correct in thinking that there may be some extra hoops to jump through to get your mortgage sorted, but that is where our 30 years experience and dedicated directly employed UK mortgage team come into play. We strive to facilitate a smooth and timely completion of your mortgage or remortgage - so as far as you are concerned, your mortgage journey is no different from the next person. Good, average or low credit scores, we have mortgages on our extensive lender panel to suit a variety of situations with competitive interest rates relevant to each type.

Debt Consolidation With A Low Score

You may be aware that you have missed payments, defaults or even County Court Judgements, along with some outstanding debts. This isn`t an uncommon picture of a credit file; specifically one that constitutes a low credit score mortgage, the important thing is that you are looking to fix it. Alternatively you may just be aware that whilst you are meeting your credit bills and commitments your total debt is growing each month and you are basically `robbing peter to pay paul`. This may mean your credit score is not that low if you are meeting the minimum payments so it may be a good time to turn your finances around. In either case a debt consolidation remortgage can be one type of solution to repair your credit file and get on top of your cash flow.

If you are not sure about your credit score you can get a copy of your credit report from Equifax for just 2 pounds without having to sign up to any monthly commitment at all. Simpy write to them enclosing requesting a copy along with your contact details and address or call our team on 0800 298 3000 and we can send you a web link.
Equifax Credit File Advice Centre
P.O. Box 1140
Bradford
BD1 5US
Mortgages for adverse credit often involve some kind of debt consolidation as it may be an effective way to restructure your finances, pay back some outstanding mortgage arrears or debts that may be causing you problems and leave you with one manageable monthly payment. If you can repay your mortgage satisfactorily and meet any other credit commitments on time it can even help to rebuild your credit score so that when you come to us to remortgage or refinance in the future you won`t need to be restricted to mortgages for poor credit, indeed the best rates out there may well be waiting for you. So it is well worth the effort to sort your finances out and pay your creditors back what you owe them

Mortgage Types For Poor Credit Scores.

Whether you need a mortgage for poor credit or have good / fair credit you will still need to look into the mortgage type that you want. If you would like to find out more information with regards to the mortgage types available to you, call us on 0800 298 3000 and your adviser will talk you through them confidentially and without obligation.

With mortgages for lower credit scores in particular, there are benefits and drawbacks involved with all of the mortgage types. For example, if you know that you do not have any investments in place or savings in the bank then it would not be wise to look for an interest only mortgage, although the payment may be lower it would leave you with the full mortgage capital due at the end of the term. Instead you could opt for full capital and repayment and be safe in the knowledge that you are reducing the mortgage balance and potentially building up home equity (subject to your home not dropping in value of course) and can even be repairing your credit rating at the same time.

Are There Fixed Rate Or Tracker Mortgages Low Score Options?

Researching further into which mortgage type is best for your individual circumstance when looking at mortgages with scores at the low end may bring you to the question; `Do I Choose to fix my interest rate or go for a tracker mortgage rate?` depending on what mortgage lenders offer you. Don`t worry as we give advice and will recommend a product to you once you have been accepted, this will become apparent as we establish what matches your needs, requirements and attitude to risk through our specially designed fact find. This can all be done by telephone and post negating any impact on your time and personal life. For example securing your mortgage payments for a set period of time with a fixed rate mortgage, will enable you to budget your monthly outgoings and keep a hold on your finances. However with a lower rate tracker mortgage you could take advantage when there are low interest rates and consequently the low repayments that may come with them.

Alternatives To Low Credit Score Mortgages

Looking to raise money but not sure if there are other routes? We may be able to provide you with alternatives for you to consider as well:

Secured loans poor credit: Act as a second mortgage behind your initial mortgage. Can raise from £5,000 to £100,000 and spread payments from 3 to 25 years to suit your budget. These are used for virtually any purpose, the most common being home improvements, debt consolidation, major projects or refinancing

Guarantor loans for bad credit: Similar to a personal loan it isn`t secured on your property and is not reliant on your credit, you do need a guarantor with a good credit record who is prepared to ensure payments are met if you do not meet them. You could borrow from £500 to £7,500 over 1 to 5 years maximum.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Security is required on immovable property.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.