How a Broker Can Help You Secure the Best Deal

If you know that your credit history isn’t going to give a lender the best impression, trying to secure a mortgage can feel daunting. However, while it is true that a poor credit score can make things more difficult, it doesn’t mean that you have to say goodbye to ever owning your own home! One of the smartest moves you can make is working with a broker who has experience helping buyers just like you to secure a mortgage with bad credit. Here’s what you need to know.

What Counts as Bad Credit?

Before anything else, you need to know what can make your credit history a red flag for lenders. A poor credit score is usually down to one or a combination of the following:

• Missed or late repayments on loans and credit cards
• Missed utility payments
• Defaults or CCJs
• Bankruptcy
• High levels of unsecured debt
• Payday loan usage

Did you know that even something as simple as not being registered on the electoral roll or having a limited credit history can have an impact too? So, by addressing those, you could begin to build up a much better picture for lenders.

Can You Still Get a Mortgage with Bad Credit?

Yes, and ignore anyone who tells you otherwise! We won’t pretend that the process is easy, as having a good credit score opens up many more doors. It can take a lot more time and paperwork to find the right lender, but you will be pleased to know that there are a growing number out there willing to work with borrowers with poor credit. So, who are they, and how do you present your application in the best possible light? That’s where a mortgage broker comes in.

Why Work with a Mortgage Broker?

You don’t have to work with a mortgage broker to secure yourself a deal, but they really do make the process a lot easier. This is especially true for borrowers with poor credit. Here’s what you can expect:

Access to the Right Lenders

A good mortgage broker has access to a broad range of lenders, including those who are willing to offer a mortgage to people with bad credit. These lenders tend to be much more flexible and will look at the bigger picture rather than just your credit score. Without your broker, you may never have known about them!

Tailored Advice

Every person is unique, and so is their credit history. A broker will take the time to understand your financial background, so that they can then offer practical, personalised guidance on your next steps. They’ll help you understand what mortgage options are available to you right now and weigh up the pros and cons of waiting a little longer to apply.

Stronger Applications

If you do decide to proceed now, then your application needs to be in great shape. A mortgage broker knows exactly what lenders want to see and will get to work right away, helping you gather the right documents and avoid common mistakes. This is really useful if you’ve been declined before, as repeated failed applications can actually make your credit score worse.

What Next?

Getting a mortgage with bad credit is far from impossible, and with a broker helping you have the best possible chances. So why not get started today?