These days everyone heads for the online mortgage calculator and comparison websites as one of the first places to go when needing to look at a new deal. This is ok if your credit file is clear and your Experian score is sitting at 999, but what do you do if you have previously had defaults, missed payments, County Court Judgement (CCJ) or other bad credit data?
Very few of the online mortgage calculator websites that you will have access to will be sophisticated enough to let you key in the details regarding these extra entries. This is because every lender treats them differently and to include their individual lending criteria would be time consuming and costly. The danger is therefore that your own investigations will either give you a lender that your poor credit means you have no chance of being accepted with, or you will be offered a rate that you will not get once you start the application process.
The knock on effect of speaking to lenders that will not lend to you is that you are usually not going to find out they are not willing to lend, until they have carried out a search on your credit file. Too many searches and you are going to see your credit score dropping. This in turn can affect the decision that the correct lender for you may make when you eventually find them…!!!
So where are these lenders?
There are plenty of lenders that are willing to consider a mortgage for someone with a less than perfect credit file and a history of bad credit. They are not always quoted on the mortgage calculators and if they are, they are not going to give you anything other than an indicative suggestion that you would be accepted.
A Mortgage Broker will be a great place to start your search. Their individual knowledge will be vital in not only looking for a list of potential lenders, but in dismissing the banks that you have no chance of getting a mortgage from. Often they will have access to the Underwriters that make the decision and can discuss your individual circumstances before any search of your credit file is carried out. Very important in protecting a score that has previously been damaged and is starting to creep back up.
Speak to one of the brokers that we work with at Open Mortgages and you can be confident that you can discuss your mortgage before any applications need to be made. They will hopefully be able to make some recommendations and work with your and the lender towards a satisfactory offer of a mortgage.
If you are not looking now but would like to know your future options, or what you can do to improve your chances for later, then that is OK as well. They are happy to do this for you.