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Bad Credit Mortgage Experts in the UK

Bad credit is a major challenge for mortgage applicants in the UK. Experts in the mortgage industry have come up with various solutions to help applicants with bad credit. The UK Government also encourages people to become homeowners with the concept of “generation buy”. It means that there are several parties that would help applicants with bad credit.

The most important factor is to identify the experts who know could help the applicants with adverse credit when applying for a mortgage.

Independent mortgage advisers

When referring to experts in the mortgage industry, some might argue that independent mortgage advisers are the heart of the UK’s mortgage system. They know the industry better than anyone. If you are an applicant with bad credit, it is advisable to speak to an independent mortgage adviser. You could always check their reviews given by other clients on how well they have done in terms of dealing with Bad Credit Mortgages.

Mortgage Brokers Huddersfield

It is important to note that not all independent mortgage advisers specialize in bad credit mortgages. This could be defined as a niche market segment in the mortgage industry. Therefore, if you have bad credit, you need to find a suitable adviser with adequate experience and knowledge in handling the circumstances.

Specialist lenders- Mastering the art of handling specific scenarios on bad credit

Applicants often have unique credit issues that are specific to them. There are no uniform criteria for applicants with bad credit. For example, lenders have different criteria for county court judgments (CCJ), defaults depending on the time of occurrence. Let’s look at the scenario below,

Mr. James had three minor defaults registered for £40 last month due to a dispute with his internet connection provider. Also, a £1000 CCJ has registered 11 months ago. This occurred due to Mr. James has been affected by the covid-19 pandemic and he couldn’t go to work for a long period of time. As a result of this, he couldn’t meet the credit commitments. He went back to work once recovered from Covid-19 and has made all payments without any further issues.

An experienced mortgage adviser would find a suitable lender for the above scenario. A potential lender could see that Mr. James had maintained payments since returning to work so the lender would be happy to support him. Some lenders ignore CCJ’s/Defaults under £300 irrespective of how recent they are and they don’t credit score.

The main Credit Reference Agencies in the UK

Lenders refer to three main credit reference agencies when assessing mortgage applicants’ credit profiles. Some lenders run a soft credit check at the decision in principle (pre-approval) stage. On the other hand, some lenders run a hard credit check even at the pre-approval stage. Lenders mainly refer to Experian, Equifax, and Call Credit when obtaining information related to applicants’ credit profiles.

It is important to note that there is a common misconception among mortgage applicants that when they try to generate their credit file/score, it leaves a credit footprint on the file. A credit footprint would be recorded only when a third party attempts to check applicants’ profiles. The external party must have the applicants’ consent to run any type of credit check.

The popular credit reference agencies and other entities now offer attractive packages to mortgage applicants to check and maintain their credit scores. This is a great opportunity for mortgage applicants as they could create an account with a recognized provider to boost and maintain their credit score.

Guidance for mortgage applicants with low credit score

There are experts who guide mortgage applicants with low credit scores to boost their scores. For example, if you are a foreign national who has recently moved to the UK, it would be difficult for you to apply for a credit card with a popular provider with attractive deals. Credit experts would help them to find a suitable provider with credit building credit card options!

It is important to show the lender that as first-time buyers, applicants are capable of maintaining credit agreements. When an applicant has credit cards and settles them in full every month, the lender realizes the applicant’s ability to maintain credit. Therefore, it helps with both the credit score and mortgage application.

Financial Planning Experts

Financial planning is an essential element for anyone having a mortgage. Financial advisers would assist people with forecasting and planning techniques to manage their expenses and disposable income. Then it would be easy to maintain the monthly mortgage payment without any arrears. If the financial planning is poor, there is a would-be higher risk of making default payments or requesting mortgage payment holidays.

During the Covid-19 pandemic, most people struggled to maintain their credit commitment and other committed expenditure. People who did proper financial planning still managed to mitigate the consequences of income shortfall. Therefore, it is important to receive the necessary advice from experts on managing credit.

Overall, independent mortgage advisers would be the key to the whole process of building a credit score, maintaining affordable mortgage payments, and preparing applicants for the mortgage application. They link up everything to help the applicants to buy their dream home.

As a mortgage is secured against your home, it could be repossessed if you do not keep up with the mortgage repayments

For more info visit site:Free Mortgage Advisors


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Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of our Independent Mortgage Brokers to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisers working for or with Independent Mortgage Brokers are fully qualified to provide mortgage advice and authorised and regulated by the Financial Conduct Authority. All our independent Mortgage Brokers will offer advice specific to you and your needs and circumstances. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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