Bad Credit Mortgages Coventry
A missed payment, a default or a CCJ doesn’t automatically rule you out of a mortgage. We help people in Coventry with a patchy credit history find lenders who may be willing to look at their whole situation.
Getting A Mortgage With Bad Credit
Most people who come to us with credit problems have already been turned down once, or they’re worried they will be. Often the credit history isn’t the real problem. The application simply went to a lender whose criteria were never going to fit. High street banks tend to score applications automatically and one default can be enough for a decline. Other lenders, including building societies and specialist lenders that don’t deal with the public directly, may look at what happened and why.
So we start with your credit file rather than a product. Before anything goes to a lender we go through your reports with you, see what’s on there and how old it is, and ask about the story behind it. A default from a job loss four years ago that’s since been paid off reads very differently to a missed payment last month. Once we know the full picture we can tell you honestly where you stand, which lenders are likely to consider you and what that could mean for your rate and deposit. Mortgages for people with adverse credit often come with higher rates and fees than standard deals and you may need a bigger deposit.
Call us on 02476 214526 or drop us a message through the contact form.
Credit Problems We Can Help With
Every lender treats these a little differently. Here’s what each one usually means for an application.
Missed Or Late Payments
A late payment on a phone contract or credit card is more common than people think. Many lenders may still consider you with one or two, especially if they’re over a year old and everything has been paid on time since. Recent missed payments on a mortgage or secured loan are taken more seriously.
Defaults
A default is registered when a lender closes an account after several missed payments. Lenders want to know how many you have, the amounts, when they were registered and whether they’ve been settled. Small defaults that are paid off and a couple of years old usually mean more lenders will consider you.
County Court Judgments
A CCJ stays on your credit file for six years from the date of the judgment. Some lenders may consider you with a satisfied CCJ and a smaller number may look at one that’s still unpaid.
Debt Management Plans
If you’re on a DMP or have recently finished one, lenders will want to see how long it has run and that every payment has been made. A few may consider a plan that’s still running if the track record is good.
IVAs And Bankruptcy
These sit at the serious end. Most high street lenders want them discharged for several years first. Specialist lenders may consider you sooner, usually with a bigger deposit.
Low Credit Score Or Little History
Sometimes there’s nothing negative at all, just not much history. The score you see on a credit app isn’t the one a lender uses. Each lender runs its own checks, so a low app score is only part of the story.
What Lenders Look At
Two people with a CCJ can get completely different answers. Lenders usually weigh up four things.
The last two or three years matter far more than anything older.
A £300 default on a mobile phone isn’t viewed the same way as a £10,000 one on a loan.
A debt that’s been paid or settled shows it was dealt with.
A clean record after the problem counts for a lot.
What Our Clients Say
How We Handle Your Application
Your Credit File Comes First
We’ll ask you to download your reports from Experian, Equifax and TransUnion. Lenders don’t all use the same agency, so something missing from one can show up on another. Better to find it now than halfway through an application.
Matching You To The Right Lenders
Through the PRIMIS network we deal with high street banks, building societies and specialist lenders that rarely advertise to the public. Picking the right one first means fewer credit searches on lenders that were never likely to say yes.
The Cost Up Front
Specialist mortgages can come with higher rates and fees, and you should know that before you commit. Our advice fee depends on how complex your case is and adverse credit is one of the things that can affect it. We’ll confirm the fee in writing before we do any chargeable work. You can read our full fee structure here.
With You To Completion
We handle the application from start to finish and keep you updated along the way. When your deal ends and your credit has had time to recover, it may be possible to move to a lower rate. That’s something we can look at with you when the time comes.
Other Mortgages We Can Help With
Help with buying your next home in Coventry.
Your first step onto the ladder, with or without family help.
Moving to a new deal when your current one ends.
Buying or refinancing a rental property.
Buying a brand new home from a developer.
Insurance that can help pay your mortgage if you’re unable to work or if you die.
Bad Credit Mortgage Questions
Can I get a mortgage with bad credit?
It’s often possible, but it isn’t guaranteed. It depends on what’s on your file, how recent it is and how much deposit you have. The best first step is a conversation so we can look at your reports together.
Will I need a bigger deposit?
Not always. For minor or older problems you may not need any more than usual. For recent or more serious issues lenders tend to ask for a larger deposit.
Will talking to you affect my credit score?
No. An initial chat with us doesn’t involve a credit search. Lenders run a search when you apply and some also run one at the decision in principle stage.
How long do defaults and CCJs stay on my file?
Six years from the date they were registered, whether they’re paid or not. Once they’re settled your file will show that, which lenders take into account.
Should I pay off a default before I apply?
It usually helps, but speak to us first. Paying it off with money set aside for your deposit could leave you short, so it’s worth working out the numbers together.
Can I remortgage with bad credit?
It’s often possible, but not guaranteed. If your credit has taken a knock since you took out your current mortgage, we can look at what’s available when your deal ends. See our remortgages page for more.
Talk To Us About Your Credit History
We’re based on Siskin Drive in Coventry and open Monday to Friday, 9am to 5pm. Give us a call on 02476 214526 or send us a message and one of our advisers will get back to you.