Fox Davidson specialise in bad credit mortgages above £150,000. We can secure mortgages for clients who have a bad credit history including County Court Judgements (CCJ), defaults, and late mortgage payments.

Can you get a mortgage with bad credit?

It is possible to obtain a mortgage, even with a history of bad credit. During the mortgage application process, lenders conduct a credit check to assess the level of risk associated with lending to an individual. The lending decision is largely based on this risk assessment, with higher-risk borrowers perceived as more likely to default on their repayments and therefore less likely to be approved for a mortgage.

Not all bad credit issues carry equal weight when it comes to obtaining mortgage approval. For instance, a late payment on a gas bill is less detrimental than defaulting on a mortgage or going bankrupt. If a lender determines that an applicant is high-risk due to bad credit, they may make an offer for funding at a higher rate, they could ask for a higher deposit, or insist on a fixed-rate mortgage to help you budget.

Fortunately, there are options available for those with bad credit. Traditional banks and mortgage lenders often have strict lending criteria that may not accommodate those with non-conventional financial histories. However,  specialised bad credit mortgage brokers such as Fox Davidson can connect borrowers with lenders who are experienced in working with individuals in similar financial situations and are more likely to approve their applications.

Bad credit happens, life happens

Sometimes life throws you a curve ball and circumstances change. We get that and so do the bad credit mortgage lenders we work with. Bad credit shouldn’t be a taboo subject, life happens. Reasons that people fall into arrears with payments include loss of income, major life events and (the obvious one more recently) COVID-19.

The impact of COVID-19 on people’s finances has been significant and varied. In the last few years, we have worked with clients who have faced difficulties due to Covid including:

Job Loss or Income Reduction: Many people have lost their jobs or experienced income reduction due to COVID-19. This can be due to business closures, decreased demand for certain industries, or companies cutting costs to cope with the pandemic. This has resulted in financial hardship for many individuals and families.

Increased Expenses: COVID-19 has also led to increased expenses for many people. This includes additional medical expenses, such as testing and treatment costs, as well as increased grocery bills due to panic buying and stocking up on supplies.

Delayed Retirement: For those nearing retirement age, COVID-19 may have delayed their plans to retire. The stock market has been volatile, and some individuals have seen a decline in their retirement savings, leading them to work longer than planned.

Increase in Debt: The pandemic has also led to an increase in debt for some individuals. Many have had to turn to credit cards or loans to make ends meet during this time of financial uncertainty.

Impact on Small Businesses: Small businesses have been hit particularly hard by the pandemic, with many forced to close or significantly reduce their operations. This has resulted in a loss of income for business owners and employees.

Many people have suffered serious and wide-ranging issues as a result of covid. While some have been able to weather the storm, others have experienced financial hardship. Whatever your reason for having bad credit, we can help you to understand your mortgage options. Even if you can’t secure a mortgage immediately, we can offer you advice on how to put yourself in a mortgageable position.

So how can Fox Davidson help people with bad credit to secure a mortgage?

During our initial call we will ask you details about your bad credit and will ask for a copy of your credit report. You can obtain this from several sources including Equifax, Experian and Callcredit.

Armed with your credit profile and your financial situation we can quickly advise you of your funding options. We will provide you with mortgage terms and if you are happy, we will apply for a mortgage in principle with the recommended lender.

Using a mortgage broker ensures that you avoid applying to countless lenders who decline to lend to you. We will match you with lenders that will lend to you and, furthermore, we will source the most competitive terms from those lenders.

If you have bad credit and wish to explore your mortgage options then please do get in touch.

Below are some case studies for clients who have bad credit and who we successfully secured mortgages for.