There aren’t many people who can sail through life without any money glitches and so if you have a poor credit rate and are worried about getting a mortgage – you are not alone.
Need help on poor credit mortgages? CLS Money are here to help.
Why do I have a poor credit rating?
There may be a number of reasons as to why you are struggling to get a mortgage because of poor credit. They could be because you’ve not always paid bills on time, you’ve never borrowed so therefore can’t prove to lenders that you are reliable or you’ve had a county court judgement against you.
What will lenders need to know?
Lenders will look into your credit report and they will ask for other types of information so that they can discover more about your financial situation. You may be asked to show payslips from your employer, or if you’re self-employed then you will need to show three years’ worth of accounts.
You will also be asked to disclose of any debts that you currently have, so it’s important to be honest and pass on as much information on your situation as possible.
Go on the electoral register
Being on the electoral register can actually help to strengthen your credit score a little. It helps lenders to conduct certain checks on you, whilst helping them to prevent fraud.
Prove you are reliable
Whilst mortgages are sometimes attainable despite having a bad credit score, if you have any unresolved issues on your file, it may be unwise to apply for a mortgage. If the problems are in the past however and you’re in a good financial position now, then there are ways you can redeem yourself and prove to lenders that you are worthy of a mortgage.
One great way to do this is to have a credit builder card. They’re easy to maintain, but they certainly aren’t a quick fix. They work on the premise that you will borrow an amount of money and pay it back over a period of 12 months. As long as you pay within the year, then your record will be updated with 12 successful repayments.
Find the right lender
Before you do anything, it’s important to find the right lender for your situation. Some lenders specialise in helping people with poor credit ratings to get onto the property ladder, so it might be worth getting in touch with this type of lender.