Top Mortgage Lenders for Bad Credit History

Can I Get a Mortgage with a Bad Credit History?

Absolutely, in fact, it’s one of the most covered Mortgage areas by Specialist Mortgage Lenders who literally exist because of these cases.

It isn’t for every Lender, there are many Mortgage Lenders which don’t like to lend to anyone who has had previous incidences of Bad Credit. 

Rightly or wrongly, this due to them believing that these borrowers pose a greater risk of not repaying their Mortgage.

Bad Credit is a broad term, which covers everything from missed payments on a credit commitment, to Bankruptcy.

Of course missed payments are going to be less of a concern to Mortgage Lenders than what a Bankruptcy or previous Repossession would be.

What are Specialist Mortgage Lenders?

Specialist Mortgage Lenders are much the same as traditional High Street Mortgage Lenders. 

The difference is you probably haven’t heard of them and they tend to Lend on areas neglected or dismissed by the Banks and Building Societies that you know.

Specialist Lenders may:

1. Require a larger deposit; due to the higher risks associated with Specialist Lending, Lenders usually require a higher minimum deposits than most. The greater the risk the Lender deems you to be, the larger the deposit they will usually require.

2. Charge higher rates and fees; again due to the deemed risk, Specialist Lenders may charge higher rates of interest and charge higher fees than mainstream Mortgage Lenders.

3. Charge additional fees; these days due to increased competition mainstream Lenders will usually avoid charging upfront fees such as application and valuation fees. Many Specialist Lenders will charge upfront fees, that may not be refundable should your application be rejected.

What makes the perfect Mortgage Lender for someone with a Bad Credit History?

The Lender selected for our Top 10 list are great Mortgage Lenders for people with Bad Credit Histories because:

1. Of their Bad Credit Criteria; they have the best Bad Credit Criteria in the market and are the most lenient Lenders when it comes to accepting would be Borrowers.

2. The number of Borrowers their Criteria Covers; their Criteria covers a large range of Borrowers who have had previous Bad Credit Histories

3. Their Processes and Systems; generally the Lenders toward the top end of our list have the best processes and systems in place, to make the process of obtaining a Mortgage with Bad Credit as seamless and stress free as possible.

The Top 10 Mortgage Lenders for Bad Credit History?

1. Halifax

Many may be surprised to see such a well known Bank top the list. But Halifax provides High Street rates to thousands of Borrowers every year who have had past incidences of Bad Credit. Where the Bad Credit isn’t severe and recent, most decent Mortgage Advisors will try Halifax first before any of the others on this list.

2. Kensington Mortgages

Kensington has made the list due to the support it provides to borrowers with lower deposits. Kensington has long supported borrowers with CCJ’s and Defaults who have just a 10% deposit.

2. Precise Mortgages

Precise covers most borrowers who have ever had Defaults or CCJ’s. They have options for borrowers who have had multiple recent and historic Defaults/CCJ’s.

2. Kent Reliance 

Kent Reliance is a borrower who covers almost every area of Specialist Residential and Buy to Let Mortgage Lending, whilst simultaneously supporting borrowers who have had past adverse credit. So if you have a complex application with past adverse credit, they could well be the Lender you are recommended.

5. Pepper Money

Pepper Money is a dedicated Bad Credit Mortgage Lender which tends to cover everything the above Mortgage Lenders do and more. Such as recent incidences, and your more sever Bad Credit.

6. Aldermore

Aldermore is another Lender who has a wide range of Specialist Residential and Buy to Let Lending Criteria, but who also provides a good range of Mortgages to those with adverse credit.

7. Vida Homeloans

Vida is similar to Pepper in regards to their adverse credit criteria. They are a true Bad Credit Mortgage Lender who provides a range of Mortgages depending on when the most recent adverse credit incident occurred.

8. Bluestone Mortgages

Bluestone Mortgages tends to price themselves toward the more severe side of the adverse credit market. If you have been declined by any of the above for any reason, Bluestone may be the next Lender to try.

9. The Mortgage Lender

The Mortgage Lender is a very Specialist Lender that likes to lend on a number of Specialist scenarios including those with past Adverse Credit. They look at everything manually and says they are a Lender that prides themselves in saying yes.

10. Together Money

Together Money likes to cover every aspect of Specialist Lending, there isn’t much they won’t consider. If you have a super complex case, such as a non-standard construction property plus adverse credit, Together Money may well be your only option.

What is the lowest Credit Score allowed for a Mortgage in the UK?

This is a question we find is asked so much by potential borrowers, and the answer in some cases is actually zero.

Specialist Lenders in particular, care less about Credit Scores and more about the content within your Credit Report.

This is because a Credit Score of 800 with Experian doesn’t actually tell you a lot about a person. It could mean you have missed payments or a Default on a Credit Commitment. But it could also mean that you don’t have any Bad Credit at all.

Mainstream Mortgage Lenders tend to have set Credit Scoring criteria which you will have to meet, but in most cases, they use their own internal credit scoring model.

And your Credit Score with each of these Lenders will differ every time depending on the Lender, because no model/algorithm is the same.

Are Bad Credit Mortgages available to Self Employed?

Yes, and in many cases the Specialist Mortgage Lenders which have particular criteria for those with a Bad Credit History, also have an appetite to lend and favourable criteria for those which are Self Employed.

This includes Sole Traders, Limited Companies and Contractors,

Remortgage Lenders for Bad Credit History

All of the above mentioned Lenders will take applications for Purchase and Remortgage.

So if you already own a property and need to refinance or simply move Mortgage Lenders or change the terms, the above Lenders will be able to help.

It’s important to not attempt to tackle a Bad Credit Mortgage Application yourself, you can waste a considerable amount of time and in some cases damage your credit profile further by making unnecessary applications to Lenders who criteria you don’t fit.

What documentation will Mortgage Lenders require?

Lenders will want documentation which evidences your income, expenditure and credit history.

Common documents will include:

Latest 3 Months Payslips or 2 Years Accounts if Self Employed

Latest 3 Months Bank Statements

Latest Years P60’s

Check My File Credit Report

Simply have a question or need to get moving. Next steps?

Not all Mortgage Advisors will have the specialist knowledge or even deal with Professional Mortgages.

Speak to one of our qualified, regulated and highly rated Mortgage Advisors

Simply complete our short Mortgage Enquiry form and we will get one Mortgage Advisor that is local to you and which specialises in your case, to give you a call. They can answer any other questions you have, provide you with a free non-obligatory quote and/or talk you through the process in greater detail.

If you’re a Contractor or have had Adverse Credit in the past, don’t worry, we can help. As a specialist in these areas, we have access to all Specialist Mortgage Lenders.
All our Mortgage Advisors hold the full CeMap qualification (Certificate of Mortgage Advice & Practice) and are regulated by the Financial Conduct Authority.

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