Since the credit crunch, lenders have significantly tightened up their credit scoring, meaning more and more people are having their mortgage application rejected. Being turned down for a mortgage can be a deflating and frustrating experience, whatever the reason.
If you have suffered from bad credit history all hope is not lost. Some lenders will be sympathetic and want to help you repair your credit rating, although you will need to fork out a sizeable deposit and be prepared to pay higher interest charges compared with standard deals.
If your poor credit history is relatively minor such as a single missed payment or a CCJ issued a few years ago, the likelihood of securing a mortgage is reasonable. However, the grimmer your scenario gets, the higher your interest rate and deposit required is going to be and the choice of products available to you diminishes.
Failing to pay your mobile phone or energy bills, council tax, store or credit card bills on time could result in blackmarks appearing in your credit file and in some cases this can lead to you picking up County Court Judgements (CCJs).
People with a poor credit rating are quite often individuals who are victims of circumstances beyond their control. Typically people who have been through a divorce, who have been made redundant or suffered a business failure.
No credit history
Some people find their mortgage application turned down even though they've had no previous credit problems. Lenders feel more comfortable dealing with people who have a track record of paying off credit, so if you have no credit history the lender will be unable to assess how reliable and creditworthy you are.
Get expert advice
If you can cobble together a sizeable deposit, there may be options available to you. Simply complete the enquiry form, and let a specialist broker do all the shopping around for you. They'll provide you with a no obligation quote and tell you which lenders offer mortgages for people with poor credit history.