ADVERSE CREDIT MORTGAGES

You will require a mortgage to finance your home bid unless you are a cash buyer. The first step to securing a mortgage before attending an auction is to speak to a lender and find out what type of mortgage, they can offer you. Here at ams: we can act as an intermediary; we have access to a portfolio of lenders and will find the best lender for your needs.

We will develop a full understanding of your financial circumstances, including your upfront deposit and from this, we will approach the most suitable lenders for your needs. We will verify affordability and be able to present this on your behalf to lenders. We will still be able to help even if you have adverse credit such as CCJs, missed payments, etc., or if you work in certain job types such as a contractor or have been self-employed for less than two years.

Certain documents such as bank statements, pay slips, and other proof of identity will be needed to process your application. In most circumstances, we find a suitable lender and arrange a "mortgage in principle" (MIP), so that once you need finance to buy the mortgaged property there will be a signed contract in place. This means that you can proceed to the auction knowing that you have the funds to purchase the property.

An adverse credit mortgage is a mortgage that is designed for people who have a poor credit history, which can include late payments, CCJs, bankruptcy, repossession, or IVA. These types of mortgages generally have higher fees and interest rates compared to standard mortgages. However, it may be an option for those who are struggling to secure a regular mortgage. Here at ams: we can help by approaching various lenders to get the best deal for your specific circumstances.

If you have a history of late payments, your eligibility for an adverse credit mortgage will depend on several factors, such as your creditworthiness, the frequency and duration of the late payments, and your employment and income status.

If you have a low credit score, you may still be able to qualify for a mortgage, but it may be more challenging. Some lenders offer adverse credit mortgages specifically designed for those with a poor credit history. However, eligibility criteria may vary from lender to lender and depend on factors such as the severity of the credit issues, employment status, income, and affordability.

Self-employed individuals may also be able to obtain an adverse credit mortgage but will need to provide additional documentation to verify their income and demonstrate affordability. Similarly, first-time buyers with a low credit score may still be eligible for an adverse credit mortgage but may need to put down a larger deposit or pay higher interest rates and fees. It is important to seek advice from an adverse credit mortgage broker such as ams: we will explore your options and find the best mortgage deal for your circumstances.

Credit problems such as late payments, defaults, CCJs, bankruptcy, repossession, IVA, and high general debt levels can all affect your mortgage eligibility. Additionally, lenders may consider your credit utilisation, which is the amount of credit you are using compared to what is available to you. A low credit score caused by any of these issues can make it more difficult to secure a mortgage, but adverse credit mortgages are an option for those with a poor credit history. Speak to an ams: adverse credit mortgage broker to identify the best options for your situation. If we can’t help, then it’s not possible!

Adverse credit mortgages, (also sometimes known as impaired credit mortgages) are specifically designed for individuals with a poor credit history. Unlike regular mortgages, they often have higher fees and interest rates, as well as require a larger deposit.

Switching from an adverse credit mortgage to a standard mortgage is possible, but it depends on your unique circumstances and credit history. To improve your likelihood of obtaining a mortgage with bad credit, you can take measures such as reducing your debt levels, ensuring all bills are paid on time, and seeking assistance from an adverse credit mortgage broker, such as ams:

Yes, it is possible to get an adverse credit mortgage with a history of bankruptcy, but it will depend on your specific situation and the lender's policies. Speak to us at ams: and we may be able to assist, even with a history of bankruptcy.

If we can’t help, then it’s not possible!

It may be possible to obtain an adverse credit mortgage with a history of property repossession or if you have a CCJ (County Court Judgment), IVA (Individual Voluntary Arrangement), or DMP (Debt Management Plan).

Eligibility will largely depend on the lender's policies and your individual circumstances. Lenders may view repossession as a significant credit issue and are likely to require a larger deposit and are likely to charge higher interest rates.

Working on improving your credit score and demonstrating responsible financial behaviour can also increase your chances of obtaining a mortgage with a history of any of the above credit issues.