Getting a Mortgage With a Criminal Conviction

Over a quarter of all working-age adults in the UK have a criminal record, so if you’re worried about getting a mortgage with a criminal conviction, rest assured that you’re not alone.

In this article, we’ll examine how a criminal record impacts mortgages and homeowner insurance, which lenders will consider your application, and how a broker can help you get the mortgage you need.

Can you get a mortgage with a criminal record?

Yes, although it may be more complex and your pool of potential lenders will be more limited, getting a mortgage with a criminal conviction is still possible. Your chances of mortgage approval will likely depend on whether that conviction is listed as spent and your broader financial situation.

Why might a criminal record affect your mortgage application?

Mortgage lenders will all want to know that you can comfortably meet your monthly repayment obligations over the whole term of the loan. Someone with previous criminal convictions would be seen as a riskier applicant than one with none.

If, for example, your conviction was for a serious offence such as theft or fraud, a lender could conclude that you may be an unreliable borrower.

Eligibility criteria

Aside from the usual eligibility criteria around loan-to-value ratio, credit records and affordability calculations based on your income, different lenders will have specific criteria around your criminal convictions and how they factor these into their application assessment.

The key criteria in this situation is whether or not your conviction is spent. When you get a conviction or caution, it remains unspent for a certain amount of time, depending on the crime and the type and length of punishment you receive. After this period of time, it becomes spent and no longer shows on your basic criminal record.

Spent convictions

Under the Rehabilitation of Offenders Act 1974, spent convictions do not legally need to be disclosed to mortgage lenders and, therefore, should not directly impact your ability to get a mortgage. This applies even if lenders ask direct questions beginning with ‘Have you ever been convicted…’ – you’re legally allowed to say ‘no’ if all of your convictions are spent.

Unspent convictions

If your conviction is unspent, you must legally disclose it if your lender asks. This could potentially lead to your mortgage application being declined.

While it may be possible to secure a mortgage with an unspent conviction under niche circumstances, keep in mind that it can be much more difficult, and the deal you are offered is unlikely to be as favourable.

How to get a mortgage after a criminal conviction

If you’re applying for a mortgage with a criminal record, make an enquiry with us so we can match you with a broker who specialises in arranging mortgages for people in this situation. Your broker will help you do the following…

• Check whether your conviction is spent. If this is the case, you are much more likely to be considered for a mortgage.
• Prepare your paperwork and compile the documents you’ll need. In addition to the standard documents required – proof of income, bank statements, etc. – you’ll need to include any evidence relating to your criminal conviction.
• Apply for your mortgage with a lender that accepts borrowers with criminal convictions. Your broker can identify lenders that will consider applicants in these circumstances.

Which lenders will consider your application?

Every lender will have its own policies regarding your mortgage application, but your broker will have access to all of this information and will be able to research the best lenders for you based on your personal circumstances.

Many of the high street banks and building societies, including Halifax, Natwest, Nationwide, and Barclays, are open to applications in principle but will consider them on a case-by-case basis rather than having a one-size-fits-all policy.

Most will decline an application if the conviction relates to financial fraud, but the decision will vary depending on the nature of the crime and how long ago it happened. Other factors, such as your income and how much deposit you’re able to offer to mitigate some of the perceived risk, can also play a part.

Getting insurance with a criminal conviction

Looking for insurance with a criminal conviction works much the same way as a mortgage in that you do not have to disclose spent convictions. Still, you are legally obliged to tell your insurer about any unspent convictions if they ask you. If you don’t declare your unspent convictions, then not only are you acting illegally, but the insurance won’t cover you, and if you’re found out, it could further impact your future premiums.

This applies to all kinds of insurance, including the common types you may need as a homeowner, such as home insurance, life or critical illness cover. When you tell them about your unspent convictions, some insurers may refuse to insure you, charge you a higher premium or impose special terms.

It’s worth noting that for some types of insurance, such as home insurance, you may be asked to declare unspent convictions of anyone living in the property. Work with a specialist broker to help you navigate the requirements and find the best insurance deals for you.

Get matched with a broker experienced in these cases

While getting a mortgage with a criminal conviction may not be simple, working with the right mortgage broker can make it as stress-free as possible. Our free broker matching service can do the hard work for you, looking at your circumstances and finding the broker with just the right specialist experience to best suit your needs.

Give us a call now on 0330 818 7026 or make an online enquiry, and we’ll assess your situation and arrange a no-obligation chat with one of the pre-vetted expert advisors we work with. There may well be a mortgage out there for you; you just need the right support to find it.