How this affects you and your mortgage options
Whilst having bad credit will usually mean most high street lenders will be unable to help it doesn’t mean you are out of options altogether. Adverse credit that can affect your mortgage application can included;
- Missed Payments
- Late Payments
- Debt Management Plans
The level of your adverse credit will establish what lenders are available to you, with the more serious cases requiring more specialist lenders. These lenders will typically want a higher deposit and will have higher interest rates to reflect the increased risk. Adverse credit will remain on your credit report for six years which means, providing you maintain a clean credit report, you will be able to switch to a cheaper, high street lender in the future.