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Bad credit mortgage brokers

What to look for in an adverse credit mortgage broker.

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By Pete Mugleston  | Mortgage Advisor Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 22nd August 2019* | Published: 27th September 2013

We hear from many customers in search of an adverse credit mortgage broker to help them achieve their goals in the property market, and if that’s what you’re after, you’ve come to the right place - the advisors we work with are specialist mortgage brokers for bad credit borrowers, and they can introduce you to the right lender.

This guide will tell you what to look for in a poor credit mortgage broker and how to find one.

The following topics are covered in depth below…

You can read more about bad credit mortgages.

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Are there mortgage brokers for borrowers with bad credit history?

Yes! Some mortgage lenders (high street ones, in particular) might offer unfavourable rates or turn you away entirely if there are any credit issues on your file, but there are bad credit mortgage brokers in the UK who can help you find a provider that is accommodating to borrowers with the following…

You may have been turned down for a mortgage (or fear that you might be) due to any of the above, but specialist bad credit mortgage advisors can introduce you to a provider who will take into account the severity of the credit issue, how long it has been on your file, and how closely you meet their other eligibility requirements.

Make an enquiry to speak with the best mortgage broker for a borrower with your specific type of bad credit over the phone today.

How do I find the best bad credit broker for me?

The right broker for you will be the one who has access to lenders who best cater for customers with your credit rating and circumstances - and the good news is that the bad credit mortgage advisors we work with cover the entire market, can offer you expert insight and pair you up with the lender best positioned to help.

The advisors we work with have strong and deep relationships with lenders and underwriters, and many of them have access to exclusive deals.

Make an enquiry to speak with one of these mortgage brokers who specialise in bad credit over the phone today.

What to look for in a bad credit mortgage broker

The right mortgage brokers for people with bad credit should have these qualities…

  • Whole of market & independent
  • Reasonable and fair fee structure - should only charge on success
  • 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

You should be wary of poor credit mortgage brokers where the following applies…

  • Is limited to a few lenders
  • Only offers broker products
  • Charges big non-refundable fees
  • Has no exclusive deals
  • Gives up if it’s not straightforward
  • Lacks market knowledge
  • Is restricted to one or two insurers

The mortgage companies for bad credit customers that we work with tick all of the boxes on the first list and none of them on second. We are selective about the brokers we work with - we handpick and assess them ourselves and require them to pass a professionally recognised, 25-module course before they gain our approval.

In other words, if you make an enquiry with us, you can rest assured that you will have access to the best mortgage brokers for bad credit in the UK.

What types of adverse will specialist mortgage lenders for bad credit accept?

Bad credit mortgage specialists often base their lending decision on the severity, age and cause of the issue. Some adverse credit is more serious than others (e.g. a recent bankruptcy is more severe than a missed phone bill payment) and the longer it has been on your file, the better, although some providers are more flexible than others.

Those with multiple credit issues may be asked to put down more deposit to offset the risk, but it depends on what those issues are. The tables below will give you an idea of the types of adverse most UK lenders might accept and how long you will likely have to wait to apply for a home loan with them on your file.

Secured Finance: Debt secured against a property or asset

Credit Issue Mortgage approval after 0-12 months likely? Mortgage approval after 1-2 years likely? Mortgage approval after 2-3 years likely? Mortgage approval after 3-4 years likely? Mortgage approval after 4+ years likely?
Mortgage Arrears Yes (Usually max 3 late) Yes (Any number) Yes (Any number) Yes (Any number) Yes (Any number)
CCJs Unlikely Maybe (If good LTV) Yes (Any value) Yes (Any value) Yes (Any value)
Defaults Unlikely Maybe (If good LTV) Maybe (If good LTV) Yes (Any value) Yes (Any value)
Repossessions Unlikely Yes (With 25% deposit) Yes (With 25% deposit) Yes Yes

Unsecured Finance: Debt not secured against a property or asset

0-12 Months 1-2 Years 2-3 Years 3-4 Years 4+ Years
Late Payments Yes (any number) Yes (Any number) Yes (Any number) Yes (Any number) Yes (Any number)
CCJs Yes (any value) Yes (any value) Yes (Any value) Yes (Any value) Yes (Any value)
Defaults Yes (any value) Yes (any value) Yes (any value) Yes (Any value) Yes (Any value)
Debt MGBT Yes (If credit file is unaffected) Yes (If credit file is unaffected) Yes (If credit file is unaffected) Yes (If credit file is unaffected) Yes (If credit file is unaffected)
IVA Possible with 25% Deposit Possible with 25% Deposit Possible with 20% Deposit Possible with 20% Deposit Possible with 10% Deposit
Bankruptcy Possible with 25% Deposit Possible with 25% Deposit Possible with 15% Deposit Possible with 5% Deposit Possible with 5% Deposit

Get in touch to speak with a mortgage company that helps people with bad credit. They will be able to introduce you to the best lender for a borrower in your shoes.

How much do mortgage advisors for poor credit charge?

The maximum adverse credit mortgage brokers in the UK can justifiable charge for their services is 3% of the loan amount. So, if you were borrowing £100,000, your broker fees would amount to £3,000, though you won’t necessarily be hit with the highest rates. Deals with rates of 1% and under are available for some customers.

The percentage you’re billed at may come down to how complex the deal is. For instance, if you have multiple adverse credit issues, it will likely take the broker longer to find a favourable deal, and they will therefore charge more for their services.

The typical amount charged by the mortgage brokers for borrowers with bad credit history that we work with is around £499, due upon completion.

Mortgage brokers should only be paid upon success, so be wary of deals with high upfront fees. The ones we work with will refund any initial charges if they’re unable to get you a mortgage - make an enquiry to speak with them today.

Can a mortgage company for poor credit help me with credit repair?

Credit repair mortgage companies can be a bit of a minefield, in the sense that some of them are known to act unethically and put their own interests first.

With this in mind, those with adverse credit are best seeking specialist insight from an independent mortgage advisor for bad credit borrowers. They can offer you practical tips for building and repairing your credit for a mortgage application.

Ways to build up and repair your credit rating include…

  • Get an adverse specific credit card - this will help if you have no credit history
  • Check your credit file and ensure it’s up to date - have any errors corrected
  • Register on the voters roll
  • Make sure all monthly payments go out on time
  • Avoid having too many ‘hard’ credit searches on your file
  • Settle your debts and control your spending
  • Avoid payday loans - many lenders see these as an indication that you’re struggling to live within your means
  • Have one, well-run bank account

Mortgage brokers who work with bad credit customers can give you further details about each of the above and help you get your credit report into the best possible state before putting you mortgage application forward.

You can find more information about checking and optimising your credit file through our guide.

Can a mortgage broker help me remortgage with bad credit?

Yes! Bad credit remortgage advice is available for borrowers with adverse whose goal is to refinance an existing home loan. Technically speaking, the deals available to remortgage customers are often the same as those for house buyers.

If you’re looking to borrow against the equity in your property (to consolidate debt, for example), it’s certainly possible, depending on the loan to value (LTV) ratio.

Getting the best remortgage deal is a case of finding the lender best positioned to cater for a borrower with your needs, circumstances and specific credit issue(s). The best way to do that is with the help of a specialist mortgage broker that works with bad credit customers every day - make an enquiry to speak with one today!

Can I find a mortgage broker specialising in bad credit anywhere in the UK?

There are mortgage brokers who arrange bad credit home loans operating up and down the UK, but a number of lenders place postcode restrictions on certain parts of Wales, Scotland and Northern Ireland, as well as areas in England.

So, for instance, bad credit mortgage brokers in Scotland might struggle to find you a deal if the property you’re after is in the Highlands, but a major city such as Glasgow or Edinburgh shouldn’t be an issue.

How do bad credit mortgage specialists check a borrower’s creditworthiness?

Mortgage advisors who specialise in poor credit may ask you to provide a credit report from one or more of the main credit reference agencies (Experian, Equifax and Callcredit) in order to determine what kind of deals you’re eligible for. Providing a credit report to a broker won’t leave a ‘hard’ footprint on your credit file - this will usually only happen when an application for credit is made with the lender.

It’s important to note that not all lenders take your credit ‘score’ into account when assessing you for a mortgage. Some of them simply credit ‘check’ to see if there is any adverse against your name. A specialist low credit score mortgage company may consider pairing you with lender that ‘checks’ rather than ‘scores’.

Get your credit rating

What else will a mortgage specialist for bad credit want to know?

Mortgage brokers specialising in bad credit will want to know about much more than just your credit rating and history. Many other factors impact mortgage eligibility, and the more of them that are going in your favour, the better chance you’ll stand of landing a favourable deal despite your adverse credit history.

To establish which mortgages you will qualify for, the broker will want to know…

  • How much income you have and how you’re employed: Obviously, the more you earn the better and some lenders prefer customers to be employed in a full-time, permanent position. A specialist lender may be required for self-employed and those who supplement their earnings with other sources.
  • Your deposit: The minimum deposit requirement you will find for a residential property in the UK is 5% or 15% for a buy to let. However, putting down more than the minimum can often yield better rates, and the lender might even insist on this if you have bad credit on your file.
  • Your age: Some lenders won’t lend to anyone over 75, others go up to 85, and a minority lend to customers of any seniority, as long as they are confident they can pay the mortgage during retirement.
  • The property type: A specialist lender may be needed if the property you’re seeking a mortgage for includes any non-standard construction elements (i.e. thatched roof, timber frame).
  • Your outgoings: Other significant outgoings such as loans or dependent children could affect the amount you’re eligible to borrow.

To speak with an independent mortgage broker about how any of the above can impact a bad credit borrower’s eligibility make an enquiry today.

Bad credit mortgage broker FAQ

Here you’ll find some of the most frequently asked question we hear about mortgage brokers who deal with bad credit, along with the answers to them.

Bad credit mortgage companies: What’s the difference between low credit brokers and bad credit brokers?

Low credit mortgage brokers deal specifically with borrowers whose credit issue is a low credit score, although some lenders don’t use scores at all to determine eligibility - they simply ‘check’ for the presence of adverse.

Bad credit mortgage brokers handle a range of other credit issues, although the vast majority of ‘bad credit’ brokers are also ‘low credit’ brokers, since a low credit score is merely one of the many types of adverse you might have on your file.

How do I find a bad credit mortgage broker near me?

Simply make an enquiry with us as the brokers we work with have access to the entire market and lenders who cover every part of the UK. They would be happy to deal with the bulk of your enquiry online or over the phone, if that’s your preference, and face-to-face meetings may be available in some locations.

Since the bad credit mortgage companies we work with are whole-of-market, their demographic location will not impact on their ability to find the best mortgage deal available to a customer with your needs and circumstances.

Do mortgage advisors carry out credit checks?

Mortgage brokers that work with bad credit customers might use information from the credit reference agencies to determine which lenders to approach, but they do not run ‘hard’ credit checks on a customer.

However, this will need to be carried out at some point by the lender, as it is not possible to get a mortgage in the UK without a credit check.

What credit score do mortgage companies use?

Bad credit mortgage brokers in the UK will be keen to know how each of the main reference agencies rates your credit, to give them a clear idea of which lenders you will meet the eligibility and affordability requirements with.

That said, some lenders don’t use all three agencies (Experian, Equifax and Callcredit) and your credit rating may differ across them all. It’s also important to remember that some mortgage providers aren’t concerned about your credit ‘score’ - they simply ‘check’ for any adverse on your file.

Why seeking bad credit mortgage advice is so important

If you need help getting a mortgage with bad credit, it’s important that the broker you turn to has access to the entire market and specific knowledge of adverse.

The key to getting the best rates and deals is finding the mortgage companies for poor credit borrowers that are best positioned to offer a mortgage to a borrower with your needs, circumstances and credit specifics, and the bad credit mortgage loan companies we work with can help you find the right provider for someone in your niche situation.

Speak to an expert bad credit mortgage broker today

If you have questions and want to speak to a UK adverse credit mortgage advisor for the right advice and bad credit mortgage tips call Online Mortgage Advisor today on 0800 304 7880 or make an enquiry.

Then sit back and let us do all the hard work in finding the bad credit mortgage companies with the right expertise for your circumstances.  – We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 22nd August 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Find out more about how we help people get mortgages with bad credit.

Bad Credit Mortgages