Bad Credit Mortgages

squigglebit

Looking for a little bit of advice as to whether bad credit mortgage brokers are worth it.
We've just been told our rental property is for being sold, our landlords are very good to deal with and once it's been valued etc will give us first refusal.
Unfortunately, we're both in the situation of having bad credit so we know that a highstreet lender unfortunately won't touch us. I'm wondering who has had experience of securing a property through a bad credit broker and if this a route that is worth us pursuing?
All credit agencies have us as poor rating. We've been working hard and if it's not the right time for us now I'd rather wait a year and go from there.

RelievedSheff

Your credit score means nothing. It is a made up number that no one else sees but you. The lenders are more concerned about the details in your credit files, your payment history etc.

What bad credit do you have. Is is missed payments, defaults, CCJs etc?

The devil is in the detail as to which lender, if any, will be most suitable for your case. With some light adverse credit you could still be placed with a high street lender. For example we have just secured a mortgage with the Halifax and I have a CCJ on my credit file.

There are brokers who post on the forum who specialise in "bad credit" mortgages.

Penguin_

As many will tell you it's not your credit rating as such but more what is on your credit report. Are there lots of missed payments/defaults etc?

squigglebit

A couple of missed payments early 2016, one in 2019 which I did try to get removed (mobile phone contract end and it all was a bit of a mess) and annoyingly one early this year which I can only blame myself for in not checking a direct debit was fully set up. I don't have any CCJ's etc. I do have a loan currently, and a couple of credit cards with small balances (£700 ish) which are being cleared in big chunks.

RelievedSheff

A few missed payments shouldn't stop you getting a mortgage with a high street lender. Speak to a broker, they are best qualified to assess your case and put you with the best mortgage provider for your situation.

squigglebit

Ok thank you for the advice much appreciated. I just thought we'd automatically be a "computer says no" with low credit scores

xcvx

I've just secured a mortgage with 5 defaults and a history of payday loans. My credit file was a mess. We were always told to use someone like simply adverse but their rates were horrendous. We used the broker that the housing development told us to and had no problems at all. 

squigglebit

xcvx said:

I've just secured a mortgage with 5 defaults and a history of payday loans. My credit file was a mess. We were always told to use someone like simply adverse but their rates were horrendous. We used the broker that the housing development told us to and had no problems at all. 

This makes me feel a bit more positive, do you mind me asking how much your deposit was and the mortgage?
Did you have any outstanding debt?

xcvx

squigglebit said:

xcvx said:

I've just secured a mortgage with 5 defaults and a history of payday loans. My credit file was a mess. We were always told to use someone like simply adverse but their rates were horrendous. We used the broker that the housing development told us to and had no problems at all. 

This makes me feel a bit more positive, do you mind me asking how much your deposit was and the mortgage?
Did you have any outstanding debt?

We used the HTB 20% loan and 5% ourselves so technically 75%. We didn't as we have spent the last year clearing our debt and finances. I think the large deposit helped and having no outgoings!

kathoheats

Hi Squigglebit
My partner and I have low credit scores - Experian said good, transunion said fair and equifax said poor. I also have some debt outstanding. I initially went through a broker as I thought I’d struggle to get an offer and we went to Aldermore bank. They made life a living misery asking 10000s questions so I went online and did an AIP with Halifax, they wanted to verify some details so called me.

well, what can I say, I went through the mortgage app with Halifax, they graded me and my partner an A4 - it’s their own internal scoring system. They have A,B and C. After your app is submitted it generates a grade. If you’re B and C it gets referred to an underwriter.

We weren’t referred and therefore they just needed to do a valuation and confirm income. They only needed 1 payslip and 1 months bank statement!
valuation was done as a desktop and was absolutely fine.
we received our mortgage offer today.

couldnt fault Halifax one bit - I was so nervous about going to a high street bank with our credit scores and the fact my address didn’t match electoral roll - this was because I had sold my flat and my parents was a pit stop until we bought this house.

From app to formal offer it too 5 days!!!!

Purplestars89

@kathoheats do you mind me asking what your adverse was ? I'm in a similar position as trying to work out how likely it is myself and my partner will be accepted for a high street mortgage.