How Fox Davidson Secured A Mortgage For A First-Time Buyer With Bad Credit

The Story

At Fox Davidson, we are committed to helping first time buyers achieve their dream of homeownership, even if they have bad credit. We recently had the opportunity to assist a client who had experienced some financial difficulties in the past which had affected their credit rating and made it difficult for them to secure a mortgage.

The Challenge

Our client had been declined by their own bank, who considered them too high-risk due to their bad credit history. However, our team of specialist mortgage brokers knew that our client’s situation was more nuanced than what could be determined by their credit score alone. We took the time to understand our client’s financial circumstances, including their income, savings, and other assets.

The Solution

Through our network of specialist lenders, we were able to identify a mortgage provider who was willing to work with our client despite their bad credit rating. We presented the lender with a detailed case that highlighted our client’s positive financial attributes and demonstrated their ability to make repayments on a mortgage. We were able to secure a mortgage offer with competitive interest rates and favourable terms, allowing our client to take the first step onto the property ladder.

In addition to securing the mortgage, we also provided our client with advice on how to improve their credit history and increase their chances of securing a mortgage in the future. First time buyers can take several steps to improve their credit history, such as:

• Paying bills on time: Late payments on credit cards, loans, and other bills can negatively impact your credit score. By making payments on time, you can improve your credit history and demonstrate to lenders that you are a responsible borrower.
• Reducing debt: High levels of debt can also affect your credit score and make it more difficult to secure a mortgage. Consider paying off outstanding debts or consolidating them into one manageable loan.
• Avoiding payday loans: Payday loans can be seen as a red flag by lenders and negatively impact your credit score. If possible, avoid taking out payday loans or other high-interest loans.

At Fox Davidson, we are committed to providing our clients with expert advice and support to help them achieve their property goals, no matter how challenging their financial circumstances may be. If you are a first-time buyer with bad credit, don’t hesitate to contact us today to see how we can help you secure a mortgage and take the first step onto the property ladder.