Is it possible to get a mortgage with a bad credit history?
Posted by admin | Under bad credit mortgage Sunday Sep 27, 2009I am currently paying back some store cards and credit cards with which I got into a bit of a mess a couple of years ago! However me and my partner have been thinking of purchasing a house. I am worried that I won’t get a mortgage due to my bad credit history! Are there any mortgage providers who would still give me a mortgage or take into consideration the fact that I am now in control of my debts and on the right path to clearing them?
Yes, in answer to your question, there are plenty of sub-prime lenders out there prepared to deal with people who have had missed and late payments. Summed up a poor credit file.
However other things other than your poor credit history will also contribute to the decision as to wether or not to provide you with a mortgage.
For instance if you are regularly paying credit card debt, this will effect you affordability of a mortgage. In other words if to much of your income is wrapped up in paying the debt then it will be deemed you can not afford the mortgage.
Also you will need a sizeable deposit as 100% mortgages are getting more and more difficult to obtain They are even rarer for some one with a poor credit file.
If i were in your situation i would try to clear my debt as quickly has possible. Once that was done i would start to save a deposit.
Pay everything on time try to miss nothing.
whilst you are doing this you are repairing your credit profile. Given two years of good conduct on your finances and a small deposit you could possibly be able to approach a high street lenders giving you the options of far better rates.
It is hard work to turn your finances round but it can be done and i really do wish you all the best. This site may help you to compare many mortgage companies at once http://easymortgageadvisor.blogspot.com/
Hope this help,
Yes, in answer to your question, there are plenty of sub-prime lenders out there prepared to deal with people who have had missed and late payments. Summed up a poor credit file.
However other things other than your poor credit history will also contribute to the decision as to wether or not to provide you with a mortgage.
For instance if you are regularly paying credit card debt, this will effect you affordability of a mortgage. In other words if to much of your income is wrapped up in paying the debt then it will be deemed you can not afford the mortgage.
Also you will need a sizeable deposit as 100% mortgages are getting more and more difficult to obtain They are even rarer for some one with a poor credit file.
If i were in your situation i would try to clear my debt as quickly has possible. Once that was done i would start to save a deposit.
Pay everything on time try to miss nothing.
whilst you are doing this you are repairing your credit profile. Given two years of good conduct on your finances and a small deposit you could possibly be able to approach a high street lenders giving you the options of far better rates.
It is hard work to turn your finances round but it can be done and i really do wish you all the best. This site may help you to compare many mortgage companies at once http://easymortgageadvisor.blogspot.com/
Hope this help,
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Mortgage Advisor
Banks are not giving mortgages out to recipients with bad credit. I pulled went on CreditReport.com and bought for all three Experian, Transunion and Equifax, Its 15 dollars. There is an area to dispute past problems. If you call your credit card co. some will settle for half the debt. This will help your credit rating. I raised my credit score 150 points in a month.
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A bad credit history may prevent you from taking a mortgage at some banks/lenders, but if you look around for sub-prime lenders you may have a better chance. The down side to that is that you are likely to pay a much higher interest rate than if your credit was good and you were current on all of your bills.
Most lenders will ask for at least 3% down as 100% financing is rarely available to a sub-prime borrower. Try and put a little aside here and there for a downpayment and you have a much better chance. A $150k house will ask for you to put down at least $4,500.
Continue paying on your credit cards. Even if you can not pay them in full make sure you pay at least the minimum due by the due date. Focus on the cards with the highest rates and pay them off first, that will save on finance charges. Also, don’t close your cards once you have paid them off. I know it’s tempting, but the less credit you have available the riskier you appear to be. Lenders want to see that you have credit available and aren’t using it. It is better to have $10k available and have $1k charged and only $1,500 available and $1k charged.
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I am a Mortgage Specialist and can tell you subprime lending is mostly nonexisitent anymore..FHA is definitely the way to take your purchase. You are only required to put down 2.25% of whatever the purchase price is. The required credit score is 620…Please consider moving on this as quickly as possible. FHA keeps raising the required credit scores. Please email me for a no obligation proposal on an FHA loan at: cmedley.ifc@gmail.com
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creditreport.imess.net – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.
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