Covid has affected many people’s financial plans. Are you afraid to apply for a mortgage? Paula Cook will help guide you through the steps needed to get a mortgage with a bad credit score.

First things first, your credit score is a number that represents your credit history. Banks look at your credit history (among other factors) to decide whether you’re likely to pay back your mortgage. If you have credit card debt or you’re dipping into your overdraft they may be concerned, depending on how much you owe, but it doesn’t necessarily mean your application will be denied.

Your best option is to look at your credit report – there are free tools you can use online to do this. Speak to Mortgage Broker Paula Cook about your mortgage needs and be honest. It is essential to lay everything on the table at the start of the application.  The lender can see everything on your credit report so there is no point hiding it – they will know. As your friendly mortgage advisor, Paula will be able to highlight any areas of concern and ensure you are better prepared for your application. As they say, knowledge is power.

Secondly, there are things you can do to prepare your credit situation for an application. If you owe money on your credit cards or are behind on your bills, try and pay the debt back. If you can’t clear it, then aim to be paying higher than the minimum amount each month, on time. Similarly, unless it is essential, try and avoid buying anything on finance leading up to an application.

A trusted mortgage broker like Paula Cook can discuss your options because every situation and application is different.  Depending on your credit score/situation, this will affect the loan to value that you will be given. Some lenders with low credit scores will not lend the 95% loan to values. The lenders may also have higher mortgage rates (interest rates) if you have defaults or CCJs (County Court Judgements) on your credit report.

Always contact a mortgage advisor who will check through your credit report – Paula offers this as a FREE service. She will also advise on the mortgage repayments if you have a low credit score and provide you with guidance.

Finally, if your credit history contains something more serious, such as a CCJ, defaults or bankruptcy, then many of the high-street lenders might turn you away. Don’t despair! Some lenders specialise in people with what they call ‘adverse credit’. They consider the context, such as how long ago the issues were. Speak to Paula Cook; she will research which lenders might accept you and what they can offer. Even if it is not possible to be approved for a mortgage right now, by speaking to a mortgage adviser you will get a better idea of what you need to do to have your application accepted in the future.

If you’d like to discuss the options available to you, contact Paula Cook today.