Bad credit mortgage broker
Published 16th August 2017
All of the adviors working with us are bad credit mortgage specialists, and work closely with mortgage companies for people with bad credit, arranging mortgages for people with poor credit in the following situations:
- No credit history
- Low credit score
- Late payments
- Missed mortgage payments
- Debt management Schemes
- And mortgage customers with multiple credit problems
Foreword by Pete, adverse credit specialist: Whenever you search for help with getting a mortgage with bad credit, there are plenty of websites offering bits of outdated advice, watered down with cheesy stock image photos and adverts for PPI claims, debt management, and mis-selling. Very little exists to actually inform homeowners looking to refinance, or potential homebuyers, what might be available to them.
Why? We aren't sure! But we decided to compile all the relevant info you’ll need into one place, and offer a platform for enquiries to be fielded by our experts.
Being specialist bad credit mortgage brokers the advisors we work with have loads of happy customers. This page is frequently updated.
Best mortgage brokers for bad credit:
The right mortgage broker
Whole of market & Independent
Reasonable and fair fee structure
Gives you access to direct deals
Has exclusive products
Has links with commercial finance
Is whole of market for insurance
Has years of experience
Has plenty of happy customers
The wrong mortgage broker
Is limited to a few lenders
Only offers broker products
Charges big non-refundable fees
Has no exclusive deals
Gives up if its not straightforward
Lacks market knowledge
Is restricted to one or two insurers
Mortgage advice for bad credit
Mortgage brokers for people with bad credit can be split into two groups. Bad credit mortgage brokers that work for YOU, and bad credit brokers that work for the LENDER or themselves. You’re business is important to all adverse mortgage brokers, sure, but it’s important to know you’re not being ripped off just because your situation means the number of mortgages is limited.
Many borrowers come to us having already searched around for a bad credit mortgage company without success, and just knowing there’s a mortgage out there is an important thing. But the advisors also make sure it’s the best deal available. We’ll take your details and map your credit profile to the most appropriate advisor, who then works to place you with the most suitable lender based on their criteria – If you fit with a mainstream lender then great, but if you need a more flexible approach then there may well be other lenders willing to consider you application. If you've been declined don't worry.
How much adverse credit is acceptable?
The following tables show roughly what the likelihood of getting a mortgage is depending on what type of credit issues you have, and when they were registered. It isnt hard fact, it is simply the opinions of our advisers from their experience of the market at the moment.
Un-secured (finance not secured against a property i.e. mobiles, credit cards, personal loans etc).
|0-12 months||1-2 years||2-3 years||3-4 years||4+ years|
|Late payments||Yes (If under 4 late)||Yes (If under 4 late)||Yes (Any number)||Yes (Any number)||Yes (Any number)|
|CCJ’s||Yes (If under £1000)||Yes (If under £2500)||Yes (Any value)||Yes (Any value)||Yes (Any value)|
|Defaults||Yes (If under £1500)||Yes (Any value)||Yes (Any value)||Yes (Any value)||Yes (Any value)|
|Debt MGMT||Yes (see note*)||Yes (see note*)||Yes (see note*)||Yes (see note*)||Yes (see note*)|
|IVA||Unlikely||Unlikely||Maybe (If good LTV)||Yes||Yes|
|Bankruptcy||Unlikely||Unlikely||Maybe (If good LTV)||Yes||Yes|
*For debt MGMT: Debt management plans sometimes don’t effect your credit file, in these inctances some lenders are happy to consider an application. Often though, the establishemnts you owe money to, will slap a default on your file the month after the agreement has been reached – something debt scheme companies dont always share with you! So, if you are in debt management plan and looking for a mortgage, get a copy of your credit file here and send it over to us, we’ll let you know based on this the likelihood of you obtaining finance.
Secured (finance secured on a property such as a mortgage or secured loan).
|0-12 months||1-2 years||2-3 years||3-4 years||4+ years|
|Late payments||1 (if only issue)||1/2 (if only issue)||Yes (Any number)||Yes (Any number)||Yes (Any number)|
|CCJ’s||Unlikely||Maybe (low LTV)||Maybe (low LTV)||Yes (Any value)||Yes (Any value)|
|Defaults||Unlikely||Maybe (low LTV)||Maybe (low LTV)||Yes (Any value)||Yes (Any value)|
|Repossessions||Unlikely||Unlikely||Maybe (low LTV)||Yes||Yes|
Bad credit mortgage brokers in the UK
Like many brokers, mortgage brokers for bad credit charge professional fees for the service they provide. The maximum a mortgage broker can justifiably charge is 3% of the loan amount (so £3k on a £100k mortgage). Generally bad credit mortgage advice in the UK is charged at a much higher rate than a standard clean credit customer, because of the increased work involved and limited options available. In reality though, if you are paying 3% it would be the very top end of the scale. 1% or under is much more reasonable and if you do the right shopping around you’ll find mortgage advice for bad credit can be more affordable than you think.
Typically, the advisors working with us charge £499 on completion for doing all of the work for you, however if your situation is really tricky and takes much more work on our side, they may increase this to cover the increased costs. Conversely, they may be able to reduce the fee if you take out certain insurance products (for which they are also whole of market), because of the commission these companies pay. Each fee structure will be dependent on your specific circumstances, so give us a call to discuss this.
Sadly, customers with bad credit are left wondering ‘can a mortgage broker help with bad credit at all?’, because unfortunately for many mortgage brokers, poor credit customers are very time consuming and difficult to deal with. As a result potential successful applicants often get turned away by the adviser if they think it may be too hard or they are prioritised down below other cases that are easier to place. It can be a frustrating experience.
Luckily for the other mortgage brokers, bad credit history happens to be a speciality, and in offering a thorough service and access to all the lenders, with close relationships to the bad credit mortgage lenders, only the placeable mortgages applications make it through. We are constantly updating the website and our information and advice pages, and as a result hope to keep people informed of any changes in criteria that will perhaps mean you would qualify having been declined previously. The good news is, improvements are being made all the time and criteria is predicted to relax even further as mortgage lending continues to expand.
Adverse credit remortgage specialists
If you are looking to remortgage with adverse credit the lenders available are very much the same as those for house purchases. As a result the advisors we work with offer access to the whole market, with a complete bad credit mortgage advice service - they are best placed to find you a mortgage and make sure its the best deal you can get at the same time.
If you are looking to borrow against equity in your property to consolidate debt for example, it's it certainly possible - it depends on the loan to value of the property. Adverse credit debt consolidation mortgages are great because you can often consolidate unsecured balances on credit cards, loans, overdrafts etc, into one payment that may be on a much better rate, but also structured over a longer period. The benefit of this is the guarantee that the mortgage is repaid, leaving you debt free at the end of the term. It also can greatly reduce your monthly payments, especially if you are stretching the term of the debt over 20+ years.
For example, a 7 year personal loan of £10,000 on a 15% rate may cost approx £193pm, the same loan over 20 years at 6% on a mortgage would be approx £72pm, saving £121pm – a huge difference. For £20k in the same scenario the monthly saving would be approx £242pm.
Although it may cost more in the long run the monthly breathing space can be crucial to you handling your finances.