Can I Get a Mortgage With Bad/Adverse Credit in Cardiff?

Bad Credit Mortgage Advice in Cardiff

Adverse credit can happen far too often, and it’s not an uncommon approach for clients to come to us for specialist mortgage advice in Cardiff when they have missed payments or have a lower credit score than is acceptable.

If you have missed one of your monthly mortgage repayments or something considered relatively minor, such as a missed payment to a mobile phone provider, you could get faced with a default attached to your credit report, which can harm your ability to obtain a future mortgage, as the lender with seeing it as a strong indication that you are a risk.

The good news is that missing any monthly payments or any amount of defaults will not necessarily mean you can’t get a mortgage, but you may need specialist help. The reason for this is that it is reasonably likely you will get turned down for a mortgage by a High Street Bank who may be risk-averse, especially if you only have a smaller deposit for the property you have your eye set on.

Specialist Lenders will want to know when the default got registered against you, and the further away you are from that specific date, the more likely it is that we’ll be able to provide some form of help if it was down to a life event such as separation, ill health or an untimely redundancy. People make mistakes when they are young, and they can feel that these financial mistakes cause trouble down the line.

We may also be able to help if you have had historic mortgage arrears or a County Court Judgement.

Bad Credit Mortgage FAQs

Below, we have gathered some helpful answers to common mortgage scenarios regarding bad credit mortgages in Cardiff & surrounding areas.

What will my mortgage advisor in Cardiff need to see?

No matter the type of credit problem you have had in the past, your advisor will need to see an up-to-date copy of your credit report, which you can obtain online completely free of charge.

You must obtain your credit report before deciding to apply for a mortgage, especially if you have been having any doubts about your credit history. The reasoning for this is that undertaking multiple unnecessary credit searches can further damage your credit rating.

I have a good income but bad credit. Can I still get a mortgage?

The answer to this depends entirely on your circumstances. Some customers may be a little perplexed when it comes to the impact of their credit. It may look bad, they may have had something flag up and cause problems, but they have a sufficient income & enough deposit to reduce a rate and get a favourable mortgage. Why won’t lenders allow them to borrow a specific amount for a property? Ultimately it all comes down to risk.

The lender needs to have the utmost confidence that you can pay back your mortgage payments without the likelihood of any form of arrears occurring. If the unfortunate happens, your home may get repossessed, which they definitely would prefer to avoid. Though it might sound rather complicated, there are still plenty of routes to take for people looking to get a mortgage with bad credit, even if those routes may incur slightly higher rates. Getting in touch with a dedicated specialist mortgage advisor in Cardiff like us will be the most appropriate next step to finding your way towards a potential tailored mortgage to your circumstances.

I’ve had mortgage problems before. Will that stop me from getting a mortgage?

Sometimes, you may find yourself financially struggling and unable to keep up with the mortgage payments you previously had no trouble paying for reasons you may not exactly have control over. These circumstances are not an ideal place to be. Whilst it could be a momentary lapse for a month, one that you can pay back in no time, your record will show it as a missed payment.

There may be other credit issues too during this period, and when it comes to getting a remortgage at the end of your term or a new mortgage after moving home in Cardiff, you may find yourself in a spot of concern. Again, this will always end up coming back to the risk. Can the lender trust you not to find yourself in this situation?

The good news is, that we have had lots of experience helping customers who have found themselves with bad credit, especially when they’ve previously had or currently have a mortgage. If you feel like you are in this situation, then getting in touch with a committed mortgage broker in Cardiff will be crucial to help you with your mortgage journey.

What other types of adverse problems are customers faced with?

Customers may find themselves with all kinds of different adverse problems regarding their credit, all of which can harm their mortgage process. These issues vary from, but are not limited to;

– Missed Mortgage Payments.
– Credit Card or Loan Defaults.
– County Court Judgements (CCJ’s).
– Bankruptcy.

Whilst these are all unfortunate situations to find yourself in, it’s not the end of the road. The process may take longer, there may be more hurdles on your path, and you may end up on a higher rate, but there are specialist lenders out there, some of whom we have on the panel, who will accept you depending on what your circumstances are.

To increase your chances of success and open yourself up to better rates, we highly recommend that you take a look at improving your credit score. We have a helpful, in-depth mortgage guide that we’ve written on how to improve your credit score, which will hopefully put you in a better place for obtaining a mortgage at some point down the line.

Date Last Edited: February 6, 2024