Getting a mortgage if you have a bad Credit Score may not be the answer to your problems.
If you do have a bad credit score and are looking to get a mortgage, don’t fret, you can still get one. They’re called Bad Credit Mortgages.
Don’t let the name get you down or think by having one people will judge you for having a bad credit score, despite how you might feel, you are not the only one. They’re essentially the same as a normal mortgage, the downside is that you will most probably have a higher interest rate.
Keep in mind, that fantastically low representative APR you saw advertised only has to be offered to 51% of applicants, your personal APR most definitely will be higher if you have a low credit score.
You may also have to save for a bigger deposit, usually around 15% will do, but the more you can save the better, so if you have the means to stretch this to 25-30%, you have a better chance.
Start making a few good money decisions
- Shop for what you need instead of the countless things you want.
- Look over your outgoings and see how much you can comfortably save, aim for a certain amount each month and if you have extra to put away at the end too then great.
- Make a list for food shopping, stick to it and don’t get led astray by those seemingly irresistible offers, 3 for 2 party food seems great but ask yourself honestly, how many prawn and spring roll combos do you need?
Sounds simple but it will surprise you how quickly you will have your deposit. Don’t panic, you got this.
Still feeling disappointed, frustrated and confused?
Don’t blame yourself, it’s not always something you have done directly that means you have a bad credit score and unfortunately there can be many reasons which leave you in this financial situation, loss of job, missed payments, bankruptcy or CCJ’s for example.
The unfortunate consequence is that these things will affect your credit score. But, if you can get a bad credit mortgage you’re making one giant size step to regaining control of your finances.
The interest may be higher and you might only be able to borrow a mere slice of the amount you wanted but when you start making consecutive monthly repayments you will be able to see the positive affects it will have on your score.
Showing you can repay your bad credit mortgage will make you look money amazing!
Don’t think you have to do it by yourself though, there are brokers who can help search the market to get you the best deal. You want to make sure you look around and don’t make too many applications straight away. This is all useful and handy information but if you don’t actually know your score or what’s on your credit report, how are you expecting to make these changes.
Your Credit Report may have incorrect information you don’t know about and it could be bringing your score down, so it’s best to check it yearly just incase.
So Top Tip: collect all the information you need so you know exactly where you stand before applying for a bad credit mortgage.