Using a Bad Credit Mortgage Broker

Struggling to get a mortgage because of adverse credit? Find out how bad credit mortgage brokers can help you in our in-depth guide.

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No impact on your credit score

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: December 08, 2021

Do you have a credit rating that’s less than stellar? Well, with the help of an experienced mortgage broker, your credit score doesn’t have to be a roadblock to achieving your homeownership goal.

This article will help guide you through the information and advice that you need to find a good deal on your mortgage – even with ‘bad credit’.

What is a bad credit mortgage broker?

A bad credit mortgage broker is someone who helps individuals with less than perfect credit find a lender that will approve them for a home loan. They have years of expertise and know the bad credit mortgage market inside and out so they can find the right lender for their clients and guide them from start-to-finish on their home loan application.

A mortgage broker is an invaluable resource to those with bad credit who are looking to buy their first house or upgrade their living situation. Without the right guidance, they may end up making poor borrowing decisions that could have long-term consequences – or have their application declined altogether.

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Why choose a broker rather than go directly to a lender?

Unlike banks, brokers work independently and can compare all offers on the market to provide you with the best deal available, based on your circumstances.

They also have access to lenders who may not be available through traditional channels, and can sometimes secure an unlisted rate or special offer that isn’t available through other comparison sites.

Bad-credit mortgages can be more complicated to find compared to standard loans, but a mortgage broker will know what criteria different lenders look at when considering applicants. They specialise in different areas of the market, meaning they can find lenders that suit your particular mortgage needs – saving you time, money, and hassle.

What credit issues can they help you with?

Lenders will carefully inspect the details of your credit history when considering mortgage applications. Criteria for approval will vary from lender to lender and a specialist broker will know which lender is most likely to approve your application.

Here are some common types of credit score issues with links to more details of how they may impact your chances of approval for a loan.

Bullet Tick Missed Payments
Bullet Tick Debt Management Plans or IVAs
Bullet Tick County Court Judgements
Bullet Tick Bankruptcy

How to find a suitable broker

You can find one straight away – by talking to us! Using our free broker-matching service, we can pair you with an expert with years of experience in resolving cases like yours – whether bankruptcy is the issue or late payments are the current obstacle.

You can rest assured that your enquiry will be dealt with straight away by a member of our team and you will have access to the best mortgage brokers for bad credit in your area.

When you connect with a broker, it’s best to come prepared with a summary of your credit score history so they can best assess your situation and how to help you. You can download your credit reports by clicking on this link here.

If you get in touch we can arrange for an advisor we work with to contact you straight away.

Can a broker help me if I have bad credit and no deposit?

In most cases, bad credit mortgages require a bigger deposit as security than good-credit loans do – but there are some exceptions that could work for those with no or very little deposit set aside. While a 100% loan-to-value mortgage isn’t possible in this scenario, you may still be able to get a ‘no deposit’ mortgage approved. A home ownership scheme like a guarantor mortgage, Shared Ownership or Help to Buy could be the key to unlocking a mortgage.

A broker can help to assess your credit score situation and recommend the right provider or mortgage scheme for your needs.

When you connect with a bad credit mortgage broker, it’s best to come prepared with a summary of your credit score history so they can best assess your situation and how to help you.

You can download your credit reports from the credit reports hub here on Online Money Advisor.

Can they help you remortgage with bad credit?

Yes, even for applicants with bad credit, mortgage brokers can also help with remortgages.

The deals available to these customers are often similar to those for first-time mortgage applicants – the lenders will still take into account your income, age, debt, and loan to value ratio when determining what kind of loan and how much interest rate may be available for your remortgage.

If you’d like more information on remortgages, check out our in-depth guide on how to remortgage with bad credit.

Gaining access to the best remortgage deal is as simple as connecting with a broker who understands which lenders can cater for your specific credit issues.

How much does a bad credit broker cost?

It’s standard practice across the industry for lenders to pay a commission to a broker when a mortgage is successfully arranged.

A fair amount of work goes into bad credit mortgage applications, so a broker may also charge an advice fee. This could range from around £300-£500 depending on how complex your case is. For example, if you have multiple bad credit issues, it will take the broker longer to assess your case and find you the right lender and they’ll charge more than they would for a simple case.

Any potential advice fees will be outlined in detail during your first meeting with the broker, where they’ll ask you exactly what your credit issues are, and take some time to understand what it will take to secure a mortgage for you. Rest assured that if they’re not able to provide assistance, then no fees will be charged.

Speak to an expert advisor today!

We know it can be hard to find a mortgage if you have a history of bad credit, but our team of specialists are here to help. The brokers we work with have access to lenders that specialise in mortgages for borrowers who might not meet the conventional requirements.

It is our goal to make the process of finding a broker simple, fast and free for you. We can match you with an expert with experience for your particular credit issues – there’s no obligation to take things further after an initial conversation. Give us a call on 0808 189 0463 or fill out a quick form to make an enquiry.

If you’re looking for a new home and need some extra guidance on how to go about getting a mortgage – we’ve got you covered.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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