Best place to get a mortgage with poor credit

Alk123

Hello all,

I'm a first time buyer and currently looking into getting a mortgage. I've saved over £20k and looking at a one bedroom flats valued around the £180000 range.
The issue I have is i missed a few credit card payments when I went travelling around 5 and a half years ago. This should be gone in September as it would have been over 6 years I've checked my Experian report and it shows up on there. My score is in the 'good' bracket around 944.
I've looked at the HSBC website and seem to be able to borrow the money I need based on my salary. Does anybody know criteria for accepted applications? I don't want to apply and get rejected, which will have an adverse effect on my credit report. Are there any lenders I stand a better chance of getting accepted with above others?

Thanks in advance for your replies.

ACG

Most lenders do not mind the off late payment.
Yours are quite historic so thats good, although HSBC can be on the stricter side when scoring applications.

amnblog

HSBC - limited chance
Broker - strong chance


Your call

Alk123

Thanks for this. I think I'lol go down the broker route then. I just didn't want to be paying a higher interest rate if I didn't need to.
I checked my credit report again and the default on my account will be gone in September.
Do you know any good brokers? Or will google bring up a list of them?
Thanks again

ACG

A default is different to late payments.

It is still quite historic so im sure there are lenders for it, but im not sure HSBC would be my first port of call where there is a default.

Malmo

Alk123 wrote: »

Do you know any good brokers? Or will google bring up a list of them?

One way to find local brokers is through the unbiased.co.uk website:

1. On the home page, next to the search box, select Mortgage Adviser and enter your postcode and hit search.
2. When the search results are displayed, in the filters on the left hand side:
a. Un-tick the Only show sponsored results box.
b. Expand the heading More filters and under Adviser restrictions, tick the box for Mortgage Broker (Whole of Market)

This should give you a list of potential brokers to contact in your locality.

Ask about their experience and make sure you understand from the brokers you speak to what fees will be charged (if any) and at what point in the process. They can be fee-free or fee. Ideally, after contacting them, they'll email you a couple of documents;

1. their Terms of Business or Initial Disclosure Document (IDD), which will outline/summarise the service they provide and their fees along with how they are regulated by the FCA etc - this is very important
2. possibly a Fact Find document that you need to complete to help them understand your full circumstances & requirements.