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Will My Bad Credit Have An Effect On Me Getting A Mortgage?

Are you worried about applying for a mortgage while having a bad credit history? Worry not! Potentially, you can still apply for some greats deals for yourself, even with some record of adverse credit in the background, getting a good mortgage is still feasible.  Your credit score rating may prevent you from getting a superb interest rate, however, you may still discover interest rates which can be a lot lower than you first thought.

Additionally, different loans maybe available such as a secured loan.  The factors which can prevent you, are for example incorrectly disclosure deposits without an audit trail and current arrears on secured or unsecured loans. Potentially there are several options that could be available to secure a mortgage.

Nobodies mortgage application is guaranteed, regardless of there credit score and its subject to been fully underwritten by the lender.

Some of the pitfalls to having a low credit score.

  1. Mortgage application might not be accepted.

Lenders will factor in your credit score when assessing your application. If your credit score is too low, it may not meet their criteria and they could decline your request.

  1. Yourmobile contract application maybe declined.

Most mobile telephone companies run a credit check when you apply for a new contract. This is because they’re extending a month of your contract to you, so they need to ensure how affordable your payments might be. If your credit score turns out to be bad, you will get stuck with a monthly contact and phones are commonly an extra cost. In case you’re leasing or making payments for your mobile phone, you might have to pay extra in advance for a brand-new phone or your bills will be more expensive.

  1. Missing out on career opportunities

Good credit score habits can have a positive effect on career choices. Some employers are allowed to request credit reports to make hiring choices. Your employer gains your exact credit score rating, but together with your signed permission they are able to get entry to your credit document and examine data like your open credit balances, traces of credit, car loans, pupil loans, late or overlooked payments, plus potentially bankruptcies/IVA or DRO’s

  1. Your interest rates might rise

Most countries allow credit scoring. It is mainly giving lenders and finance companies an indication of credit profile and helps them to assess the risk.  A dip in your credit score rating will not mechanically grow your top rate, nor will your policy be cancelled in case you drop under a certain level. But an awful credit rating potentially results in higher interest rate, resulting in higher payments.

  1. Problem beginning a new business.

Many new businesses need bank loans to help fund them from the outset. An awful credit history can limit the amount you’re able to borrow to start a brand-newbusiness, even if you have a solid business plan and statistics supporting your enterprise success.

  1. It can affect you financially

Having low scores can potentially affect you financially. One issue that can show up is that you can be denied credit. A low credit score indicates to creditors that you are a risk borrower and they may not be inclined to lend you the finance.  Another issue that might arise from having a low credit score is that even if you aren’t denied credit score, but your monthly premiums or subscriptions maybe higher.

How to improve low credit score

The several options, some highlighted below:

  • Start by talking with the lender or if necessary advisory agencies, such as citizen advice bureau,if possible, refrain from taking on or applying for any kind of debt for the next few years.
  • The principal motive why people with awful credit rankings don’t improve them is due to the fact they aren’t aware of the impact of having a low credit score can have, for several different reasons.
  • Don’t make a habit of taking loans out each time you are facing a dilemma. Try to solve this by an alternative way and leave applying for loan for a life changing factor. (Such as buying a new home, starting new business etc)
  • Also try to improve your credit scores for the future.

Who to consult when you want to apply for a mortgage or secured loan, whilst having a bad credit score?

The question is who will help you in this situation? Mortgage Advisors or Financial Advisors andin some cases talking directly to the bank or building society. Mortgage brokers can research the market and deals for you by liasing with the lenders who specialist with clients with low credit score. As a professional, they know exactly what kind of applications the lender will accept and set up documents accordingly. Also, they are up to date with the lenders criteria. So, they know which lender will turn out to be most suitability for you.

So, what is the advantage of speaking to a expert?

Your mortgage application will more likely to be accepted and the chances of getting rejected will reduced, a lot of time and money will be saved and you will not have any stress applying for the mortgage.


Despite having some disadvantages, it is still possible to get a good mortgage deal. With right procedures and following up correct criteria you can still have your desired mortgage. We have highlighted some detailed information for your purchasing a new home journey by which you can get be beneficial. We are hopeful you find this useful.

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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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