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Remedies To Overcome Credit Issues When Applying For a Mortgage

Challenges are there to be overcome! Independent Mortgage Advisers are there to assist mortgage applicants with credit issues. They know different strategies to overcome credit issues and submit a successful mortgage application. It is important to seek suitable advice from an experienced mortgage adviser.

Proactive strategies to avoid credit issues

Independent mortgage advisers are aware of specific remedies to avoid credit issues both reactively and proactively in preparation for the mortgage application. It is important to avoid bad credit as much as possible with proactive strategies.

Setup monthly direct debit payments for committed expenditure

Mortgage applicants have various committed expenditures on credit cards, personal loans, and hire purchase agreements. It might be difficult to manage income and expenditure due to the current financial circumstances and personal factors such as financial dependents, school fees, child-care costs, etc. Financial experts have identified that setting up monthly direct debit payments to cover committed expenses could avoid potential miss-payments up to a greater extent.

Further, research has indicated that people who set up direct debit payments to cover basic essential expenses such as gas, electricity, water, food, and personal care are also avoiding the risk of miss-payment compared to others who don’t use the DD facility. Also, many utility providers now offer attractive deals when applicants opt to set up a direct debit payment method.

Monthly direct debit payments would boost mortgage applicants’ credit score    

Mortgage industry research has revealed that monthly direct debit payments would boost the credit score. A credit score is essential to apply for a mortgage in the UK. A good credit score would open up many opportunities for applicants with low-interest rates and product fees on the fixed deals. Below are how the monthly direct debits would work as the perfect remedy for bad credit.

  • Avoid Late Payments

Mortgage applicants who pay their utility bills and other essential payments on time even for just six months would begin to lift their credit score. Therefore, applicants who are planning to get on the property ladder as first-time buyers, home movers, BTL property buyers could set up Direct Debits for all their regular payments, to ensure they never forget to pay.

  • Make Regular Payments

Direct Debits provides regular payments, which indicates applicants’ ability to meet commitments on time, all the time. Reducing applicants’ credit card balances is a particularly great way to boost their scores. Therefore, applicants could use direct debit to pay off even just a minimum amount each month. However, if the applicants are advised to settle the credit card balance in full every month as it helps the credit score.


  • Monitor the regular expenses via online platforms

Applicants could monitor the monthly payments on bank statements. It is even convenient to download the online banking app to monitor all the committed and basic essential expenditures to be made on time. It helps the applicants’ financial position and reduces the chance of missing any payment.

  • Grow Your History

The more regular payments applicants make, the richer their credit history would become. Paying applicants’ expenses by Direct Debit month after month, would quickly grow their history and show they are reliable borrowers. If you are a foreign national who has recently moved to the UK, this would be the ideal strategy to boost your credit score as credit reference agencies link with the banks for information.

Reactive strategies to mitigate credit issues

Credit issues could still occur due to financial difficulty and other personal circumstances. In this case, reactive strategies could be used to mitigate the damage caused by the credit issue and to find a suitable mortgage provider.

  • Settling the due amount as soon as possible

Once a credit issue has occurred, it is important to recover at the earliest possible time. The longer the credit issue remains, it would affect the credit score and chances of securing a new mortgage. There are alternative financial solutions to help applicants with such adverse credit circumstances.

  • Inform the relevant provider and credit reference agencies

The applicants should inform the relevant authorities as soon as they settle the due balance on delayed payment. It would be cleared on the credit file and credit reference agencies would adjust the scores accordingly. If the applicants have an account with the credit reference agency, they could cross-check the update and impact on credit score.

  • Speak to a mortgage adviser who is an expert on bad credit mortgage

If someone has experienced recent credit issues and planning to apply for a mortgage, it would be better to speak to a mortgage adviser. An experienced adviser would make their life easier by guiding them on the correct path towards finding a suitable lender.

Overall, there are few remedies available in the UK mortgage industry to overcome credit issues and apply for a mortgage. Credit issues are no more the end of your mortgage or home buyer journey. It could just be recognized as a challenge that could be overcome with correct advice and guidance.

The suitable advice would come from an experienced mortgage adviser who has handled mortgages with bad credit. Applicants with bad credit should not waste any time trying lenders on their own which could end up with application declines and a dip in credit scores.

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:Remortgage Advisor


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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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