Getting onto the property ladder as a first-time buyer can already be a daunting task. Add a bad credit report to the mix, and it can be easy to assume you won’t be buying a property anytime soon. However, that doesn’t have to be the case. If you’re anxious to move out of rented accommodation or your parent’s house, this article is for you.
It is more than possible to get a mortgage with a poor credit score. Your options won’t be abundant. You may need to pay a higher interest rate and deposit. But it is possible—that’s the main thing we want struggling first-time buyers to take away from this article.
As a Whole of Market mortgage broker with decades of experience, we know a thing or two about helping people from all walks of life get onto the property ladder. The important thing is to not despair. Your credit score is not the only factor that lenders will consider when making a decision. There are also lenders with more flexible eligibility requirements.
Below, we’re detailing some helpful tips to make your journey run more smoothly and boost your chances of securing a mortgage – even during the cost of living crisis.
What’s dragging your score down?
You already know your score isn’t great. But it’s important to get to the bottom of why.
Red flags that may appear in your report include the following:
- Debts
- Late or missed payments
- Hard credit checks
- Defaults or county court judgements
- Bankruptcies and formal debt relief plans
- Identity fraud (this will be held on your file under the CIFAS section)
- No credit history
Is there anything I can do right now to improve my score?
Sometimes, there are quick-fix solutions you can do to alter your score into a more favourable position.
These include:
- Checking several credit reference agencies to check for inconsistencies
- Disputing any inaccuracies
- Updating personal data, such as your address
- Joining the electoral register
- Pay any outstanding bills or payments (if possible)
You should get professional advice on what to prioritise to put your score in a more favourable position. Your circumstances are unique and a reputable mortgage advisor will be able to review your report and finances to determine the best course of action.
A Whole of Market broker will also have a broad understanding of the mortgage market and the support available to anyone who is struggling to get onto the property ladder.
Our first-time buyer and bad credit mortgage experts are here to help. Contact our team today to book your free initial consultation.
