It's easy to end up with a bad credit history, often due to no fault of your own. Perhaps your bank has not paid a direct debit on your behalf, perhaps you mislaid a bill, or maybe you moved address and forgot to inform a creditor. You might have been late or missed payments on credit cards, had a dispute over an invoice, oversights with household bills, financial problems caused by divorce or redundancy, had no previous credit history or were not registered on the electoral roll.

Unfortunately most high street banks and building societies use a combination of credit scoring and credit search to assess a mortgage application. If previous missed payments, defaults or arrears show up in your credit file, your overall credit score will be adversely effected, which all to often means that a refusal is the only outcome. 

However, a poor credit rating is an obstacle which can be overcome. Even if you've previously been refused or turned down for a mortgage because of a low or poor credit score, there are lenders who are more sympathetic and offer what is known as sub prime, non standard, or credit repair mortgages. 

The range of options and rate of interest will depend on the seriousness of the credit problems you have encountered in the past. There are different levels of sub prime mortgage. For instance, a discharged bankrupt is likely to have a very bad credit rating and will be sold a "heavier" version charged at higher rate of interest because the borrower is considered a more risky bet.

Someone who has missed a couple of mortgage or loan payments in the past will often be sold a "near-prime" or "light" version with the interest rate being slightly higher than mainstream mortgage products. 

If a prospective borrower has minor credit problems or the issues were settled some time ago and the borrower has a good track record since, it should be possible to find a mortgage with a mainstream lender at a standard rate.

Find the best deals for you

The smart way forward is to discuss your situation with a professional adviser rather than going direct to a lender and risking a string of rejections. Furthermore, a number of the specialist lenders only accept business from qualified brokers and advisers.

An independent broker will look at your case to determine whether you are likely to fail the criteria of a mainstream lender. If you are ineligible for a standard product, they will recommend another lender best suited to your needs and situation.

An independent mortgage broker, has access to all the mortgage lenders in the UK with over 8,500 different types of mortgage products available.

Contact us and let an expert advisor find the best products for you. There is no obligation and it costs nothing to see what your options are. 

Help is available even if you've had problems getting a mortgage elsewhere.