So, you've got your eye on that cute Victorian terrace or sleek city apartment, but there's just one tiny snag – your credit score resembles last year's Halloween candy stash (not so sweet). Fear not! Getting a mortgage with bad credit can be challenging, but it's not impossible. Options include improving your credit score, saving for a larger down payment, seeking alternative lenders, or considering a guarantor mortgage. Here’s the lowdown to help you get a little further along the road to mortgage approval…
Face the Music (or the Credit Score):
First things first, we need to address the elephant in the room – your credit score. It might be as appealing as a soggy sandwich, but hey, we've all been there. Before you start dreaming about paint colors and furniture layouts, download your credit report. Knowing where you stand is the first step towards improvement. Plus, who knows, maybe you'll discover a few hidden gems buried in there, like that time you paid off your student loan early (well done you!).
Own your story
We all have skeletons in our financial closet, whether it's a missed payment or those ill-advised impulse buys during late night scrolling sessions. Nobody's perfect! When you approach lenders, own your story. Being able to fully explain any hiccups and demonstrate your plans for improvement with a lender will help the underwriters make a decision on your application.
Get creative
While you may not be considered a low-risk borrower with a high street bank, there are lenders that specialize in bad credit mortgage programs. You may need to explore higher interest options - do your research, and don't be afraid to ask questions. After all, the only silly question is the one you don't ask!
Build better habits
It's time to roll up those sleeves and start building those good credit habits like a pro. Pay your bills on time, keep those credit card balances in check, and resist the urge to splurge on that shiny new gadget. With a bit of patience and perseverance, you'll be watching that credit score climb faster than a squirrel up a tree.
Get support
Getting a mortgage with bad credit might feel like navigating a maze blindfolded, but there are plenty of resources online, including our handy guide to improving your credit score. Also, don't be afraid of reaching out to family and friends when the going gets tough. After all, that's what having a personal tribe is for, supporting you through life.
Check out our handy guide for improving your credit score to help you along the way!