Getting a mortgage with a default
It is often easier and cheaper than you might think when getting a mortgage with a default, and other types of bad credit.
Mortgages for people with a default on their credit files are generally not a major problem and interest rates can be very reasonable. It’s important to speak to a qualified mortgage advisor if you have credit problems to make sure that you get the best deals.
In this section we answer your most asked questions and we look at the potential pitfalls when getting a mortgage with a default.
Can I get a mortgage with a default?
The simple answer is yes, if your only credit problem is a default, or even several defaults then you should have no issues getting a mortgage.
One of the most common questions about bad credit mortgages is can I still get a mortgage with a default, or other bad credit records. We specialise in helping people with low credit scores and all levels and types of bad credit to save money on their mortgage.
There are several high street and a number of specialist lenders that would offer mortgage for people with defaults.
You should also be able to get all types mortgages with a default, including:
- New home mortgage
- First time buyer mortgages
- Buy-to-Let mortgages
- Equity release / Lifetime mortgages
- Bridging finance
- Second charge mortgage
The best way to find the right mortgage deals with defaults is to speak to one of our fully qualified experts.
How to get a mortgage with a default
There are several ways that you can get a mortgage and some can be better than others when you have defaults or other forms of bad credit in your credit history.
1) Speak to a mortgage broker is usually the best and easiest way to get a mortgage with a default. You’ll get the widest choice of mortgage lenders and deals when you apply through a mortgage broker, you should also save time and potential issues with multiple mortgage applications. The only real down side to this is that you will usually have to pay a broker fee, but that can be extremely worthwhile to get valuable mortgage advice.
2) Online mortgage application is another alternative that can be suitable for some people, especially if you have a good understanding of mortgages. You should avoid this route if you need help or often this isn’t suitable for people with credit issues. The main benefits to this option is low or no fees and can be done at your own convenience.
3) Speak to your bank or building society can also be an option for people with defaults but not for more serious credit issues. Your bank may be reasonably flexible with their criteria for bad credit mortgages, but often this isn’t the case unfortunately.
Is it possible to get a mortgage with a default and how does it work?
Each mortgage lender will have its own ‘lending criteria’ which it uses to assess your eligibility for a particular deal.
There are over 100 mortgage lenders in the UK and thousands of different deals, so finding the best loan can be difficult. It can be even more confusing to get a mortgage with a default, so this is where a specialist mortgage broker can help.
Here are some of the main things to think about for is it possible to get a mortgage with a default:
- How long ago was the default registered? As with most types of bad credit mortgages, it is always better for more historic credit report problems. If your default was registered more recently (within the last 6 months), then you might find getting a mortgage more difficult.
- What was the default amount? Generally, smaller value defaults are considered to be lower risk and less serious. If your default was for less than £250 or combined defaults of under £500, then you shouldn’t have a problem.
- Has your default been satisfied (paid off)? If you have a satisfied default that you have already paid off, then you will have more lenders to choose from and better deals. Some lenders won’t consider mortgage applications with active or unsatisfied defaults.
- Which type of credit facility did you default on? There are several different types of credit or lending, and each of these has different levels of risk for mortgage lending with defaults. Some of the lower risk credit facilities are telecoms agreements or mobile phone contracts, this is because of the history of issues with these.
How to get the best mortgage rates with a default
You may find it difficult to find a mortgage deal through high street lenders if you have a history of bad credit and a lot of lending via unsecured or secured loans. We have access to a great panel of specialist lenders who can offer great deals in these circumstances.
You can contact our team of default mortgage specialists to get the right advice on what your options are. If you want friendly expert advice then you can CLICK HERE or call 0330 118 8188 TODAY.
essential MORTGAGES is authorised and regulated by the Financial Conduct Authority.