Mortgages with a less than perfect credit history
A missed payment, a default, a county court judgment, a debt management plan, an IVA or a past bankruptcy doesn't automatically mean no. It means the choice of lender matters more, and so does timing. I'll look at what's on your file, give you an honest view of where you stand, and if the answer is “not yet”, tell you what would change it.
What lenders look at
Four things: what happened, how long ago, how much it was for, and whether it's settled. A late payment two years ago is a different conversation from a default last month. Most lenders look hardest at the last two or three years, and every lender draws its own lines. Some won't consider any credit problems. Some will, usually with a larger deposit and at a higher cost. Knowing which is which before you apply is most of the job.
Get your credit file first
Before anything else, pull a report that covers all three credit agencies, Experian, Equifax and TransUnion, not the free view your bank shows you. Check every entry is accurate, because mistakes happen and can be corrected. Make sure you're on the electoral roll at your current address. And don't apply for anything new, however small, while we work out the plan.
What I'll do
I'll go through the report with you, line by line, and tell you honestly what it means. Where there's a realistic route, I'll aim to get a decision in principle with a lender that accepts your circumstances, so you know your number is real before you view anything. A decision in principle uses a soft check, which doesn't mark your file. What I won't do is fire off applications to see what sticks, because every declined application makes the next one harder.
If the answer is not yet
Sometimes the honest answer is that it's too soon, and that six or twelve months of doing the simple things would put you in a far better position: every payment on time, balances coming down, no new credit, and the electoral roll sorted. If that's the case I'll tell you, tell you what to do in the meantime, and tell you when to come back. Nobody is turned away and nobody is chased.
The same six things as every client
A reply within one working day, an honest view of affordability from the first call, a decision in principle before you view where possible, a written update every Friday once we're moving, one point of contact, and the decision always yours. They're on the home page, and they don't change because your credit file has a history.
What I'll need from you
Your credit report from all three agencies, your last three months of payslips or your tax figures if you're self-employed, three months of bank statements, proof of deposit, photo ID and proof of address. And the story behind anything on the file, because lenders ask, and a good explanation given up front is worth a lot.
Questions people ask me about credit problems
Can I get a mortgage with a default on my file?
Sometimes. It depends on how long ago it was, how much it was for, whether it's settled, and what the rest of your file looks like. Some lenders won't consider it, some will with conditions. I'd look at the file with you before anyone applies anywhere.
Can I get a mortgage after an IVA or bankruptcy?
Possibly, once it has been discharged and some time has passed. The choice of lenders is narrower and the deposit they want is usually larger. It's a conversation about timing as much as anything.
Will applying damage my credit file further?
A full application leaves a mark, and several declined ones look worse. That's why I'd rather look at your file first and make one application that is likely to work than three that aren't. A decision in principle uses a soft check, so that part doesn't mark your file.
Will it cost me more?
Often, yes. Lenders who accept credit problems usually charge more for the risk and want a bigger deposit. I'll set out what that means for your monthly payment before you decide, and if waiting a year would put you in a much better position, I'll say so.