Whilst a stable employment history, good salary and large deposit are all good starting points when applying for a mortgage, your application is still likely to be refused by many lenders if you have a poor credit rating.

A bad credit rating might include a County Court Judgement (CCJ) against your name or previous defaults on debt repayments. If you have been bankrupt in the past then this will also be included on your credit history and is likely to be detrimental to a successful mortgage application.

Of course, there are sometimes exceptions and several lenders specialise in what are generally acknowledged to be higher risk loans to applicants with a poor history of debt default, bankruptcy or CCJs. Unfortunately, the reasons behind your bad credit history are generally of little consequence to the lender and whilst this might sometimes be unfair, it is likely that if you have a poor credit rating your options for borrowing will be limited and the cost of borrowing will be more expensive.

If you have a poor credit rating you may be required to find a larger deposit than otherwise and pay a higher interest rate than would otherwise be the case.

To check your credit rating various third parties will undertake a check on your behalf. You can check your own, free of charge at www.noddle.co.uk, which we would always advise everyone to do before they consider their mortgage options.

Simple ways to improve your credit score include making sure that you are registered on the electoral roll and that you don’t miss credit card or loan repayments.

The good news is that more and more lenders are coming back into the “adverse” market and rates are definitely becoming more competitive.

You may also find our Blog article of interest; 'How to Improve Your Credit Score'.

For more information or to speak to a mortgage adviser contact us on 01628 507477.

Download our Free First Time Buyers Guide

Recent posts

The average seller’s asking price dropped by 0.4% in July, a bigger drop than we have typically seen. 

We explore the differences between Millennials and Gen Z and what both generations ideally want from a new home.

Should you overpay your mortgage? If you can put extra cash away you need to seriously consider whether you should pay more off on your mortgage or put it into a savings account.

Buying a property, especially in the current climate, is a big decision for first time buyers. We have listed a few tips that can help you buy your first propertyy

Does the time of year make a difference in house purchases? The answer is, yes and no.

The popularity of buying a house can vary depending on various factors such as regional trends, how the economy looks, and of course personal circumstances. 

If you are looking at putting your house on the market, you may want to consider giving your garden some TLC. Small changes can make your outside space a lot more attractive to potential buyers resulting in a faster sale.

Getting on the property ladder is a big milestone in life, and is not something to take lightly. There are several things to take into consideration such as saving up for a deposit, finding your dream home, and finding the best mortgage product to suit you. Here we look at UK first time buyer statistics.

If you are struggling to get over the hurdle of saving enough deposit due to being in a rental property, but wish to purchase your own home, you may be able to with a 100% mortgage. You will need to meet certain requirements and be financially stable.