3 Steps To Getting A Bad Credit Mortgage

Need a bad credit mortgage, but not sure how to get one? Follow these three steps to mortgage success.

1. Find a good advisor

Most mortgages for people with poor credit ratings are only available through specialist mortgage advisors. Finding the right advisor is key to finding a good mortgage product. In the UK, all mortgage advisors must be authorised by the Financial Services Authority (FSA). Authorisation means that the advisors have met strict qualifying criteria and must abide by the FSA’s rules when advising their customers Make sure that your advisor is:

• FSA authorised you can do this by checking the FSA website
• Experienced – this is a specialist market and it’s important that your advisor has experience.
• Market knowledge – the more your advisor knows about the market, the better quality of product they will be able to find for    you.
• Customer service – when you are already in a stressful situation, you need a sympathetic, efficient advisor who takes the time    to understand your circumstances and keeps in touch.

2. Be realistic

If you are already in financial trouble, then you need to take on a mortgage that you can control. Asking for too much money will result in problems with repayments. Whilst you may really want a bigger house, or somewhere in a nicer area, restrict yourself to what you can really afford. This means that you’ll be able to make the repayments more easily and, should you choose to move somewhere else in the future, you’ll have a good payments record to back up your next mortgage application.

3. Make an effort with your payments

If you are thinking of getting a mortgage, but you suffer from a poor credit rating, you need to take control of your finances now. Look at ways in which you can make the minimum payments on your loans and credit cards and speak to your lenders and card companies to show that you are trying to make a difference. Showing that you are making an attempt to pay your debts can help your credit rating in the long term and it will help mortgage lenders to look more favourably on your application than they would if you just let payments slide.

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