Finding a good mortgage deal for yourself and your family can be a daunting task. It is important to know that there are several options available. First of all, you can use a specialist lender. These lenders are more likely to consider your application, and offer flexible criteria for affordability assessments. You may also be able to refinance to a cheaper rate once your credit history improves. However, not all of them can provide this.
Another way to find a good lender is to search on price comparison websites. The information you obtain from these websites will help you to make an informed decision. While some lenders will only perform a “soft” search, others will conduct a comprehensive credit analysis to ensure that your loan will be affordable.
If you have no credit history at all, there are still lenders who will accept your application. Lenders will take into account your income and any other factors when assessing your application. However, you will need to demonstrate that you are capable of repaying your mortgage. They will want to see some form of deposit. Generally, you will be required to put down a minimum of five percent of the purchase price of the property.
Alternatively, you can work with a specialist broker. A broker can assist you by finding you the best deal from all of the lenders in the market. Brokers have access to the entire range of lenders, and can even provide advice after a detailed assessment of your credit situation.
In addition, some brokers are specialised in bad credit history. This can be a particularly useful service for first time buyers, as they can advise you on the most suitable lender. Some of the specialist lenders may be able to help you to apply for a mortgage, and offer flexible lending terms to cater to your specific needs.
Bad credit history can also be a determining factor for the amount of deposit you need to put down on your mortgage. Lenders will take into account the amount of adverse on your record and the length of the problem. Therefore, you may need to pay a larger deposit.
Many people have to start by improving their credit history before they can be approved for a mortgage. Your lender will be able to assess how much it will cost you to raise your score, and how effectively you can do so. To increase your score, you should remove inaccurate information from your credit file. Also, you should avoid submitting too many hard searches.
For some, having a poor credit history is the reason for a rejection from a mainstream lender. Even though this can make your application seem more risky, you can still be accepted. Most mortgage providers perform a credit check before making a decision.
Some of the most common types of adverse credit include bankruptcies and repossessions. This is a major factor for some lenders, as they consider these a sign of a higher risk. But if you are still active on these debts within six years of discharge, you may still be able to get a mortgage.