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
Green Mortgages | Rewards and Benefits
Yesterday
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
11 days ago
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
Lloyds boost lending for first-time buyers
18 days ago
Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.
As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more.
The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.
Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.
Nationwide ease criteria for first-time buyers
21 days ago
Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.
Ways to save money over the summer holiday
27 days ago
Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break
More information
Trusted by
