Looking for a bad credit mortgage in halifax

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Getting a bad credit mortgage in Halifax is possible and there are mortgage brokers who can assist you look for one. However, with the bad credit history, you will need to make a deposit of about 25% to 35% and most times the purchase prices of the houses are extremely high. If you are planning to refinance your home with a bad credit mortgage, one of the essentail considerations is the amount of equity you have in your home. The mortgage brokers available that will help you look for the mortgage in Halifax will advise you on the loan and help you make the best decision.In addition to that, they also do the following: ensure you get the best rate, renew your mortgage, private financingetc

If you do not have a good credit rating, it can be difficult to get a loan from some lenders in Halifax. A low credit score can make searching for a loan a stressful process for you, and you may feel frustrated. . But you aren’t the only one looking for a bad credit loan in Halifax. There are providers in Halifax who will work with you despite your low credit rating.You can try out savings loans and credit unions as they are willing to give you loans with low credit scores.  However, they might request for collateral that you can not provide which is quite discouraging. As the online market develops and grows, several options for people seeking loans are coming out and most of them are available through alternative lender’s ad you need to apply online through any of them that is reputable so you can easily be approved for the loan.

For first time buyers, Halifax mortgage has a set eligibilitycriteria. As a first time buyer, you will need to deposit about 5% of the price of the property you want to purchase and you will qualify for a mortgage meant for first time buyers from Halifax. Of you are applying with a second person, only one of you needs to be a first time buyer before you can be eligible . Halifax does not require borrowers to have a  minimum income but your income needs to be enough to cover for your repayment, based on the calculations from Halifax. Halifax does not accept gifted deposits from friends, family, cousins, uncles or aunts or people who are related to you. If you are applying on a leasehold property, there must be a minimum of 70 years left on the lease by the time you are applying.

If your application has been declined by Halifax, there are several reasons this could have happened. They do not tell you what it was declined, but you can try your luck and ask one of the staff or you can consult a mortgage broker. Below are some common reasons you application might have been rejected.

A poor credit ratingThis is a numerical indicator of your creditworthiness when it comes to paying your debts and bills on time. The record is based on the financial transactions recorded on your credit report, and the higher the score is, the more easier it is for lenders to consider you for a mortgage. However, some people who have high credit scores can still be automatically rejected when certain red flags are seen on their records for example County Court Judgements, bankruptcies or IVA.

Concerns over affordability– When you apply for mortgage, the lender will look for information about your annual income and spending as well as your recent bank statements. They use this information to determine the likelihood of you falling behind in payment  and they are usually very strict when they are conducting these affordability checks on people who are contract workers or self employed because their income is not consistent.

You are not eligible for the type of property you want – All lender’s have different criteria for different kinds of properties which you have to meet. The criteria can be financial or non financial and might include age, residency status, occupation, residency status and the type of property you want to buy.

Errors linked to administration-Providing inaccurate information on your application or providing the wrong documents might be the reason why you were declined, so you should cross-check your application for errors or even ask a specialist to do that too. Check for errors in your address, age, name including confirming if all the listed documents were provided.

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FCA disclaimer

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.