MORTGAGE WITH NO CREDIT HISTORY

A no credit history mortgage is a type of home loan that is designed for borrowers who have no credit history or a limited credit history. This means that they may not have a credit score or have a credit score that is too low to qualify for a traditional mortgage.

These mortgages are typically offered by alternative lenders who are willing to take on higher-risk borrowers. These lenders may use alternative methods to evaluate a borrower's creditworthiness, such as looking at other proof of payment history, employment history, income, and debt-to-income ratio.

No credit history mortgages are often used by first-time home buyers, immigrants, or younger borrowers who have not yet established a credit history. However, it's important for borrowers to carefully consider the terms of the loan. By working with ams: we will minimise charges, and interest rates and ensure that borrowers get a fair deal.

In some cases, borrowers may be able to build their credit history over time and refinance their mortgage to a traditional mortgage with better terms. This can help them save money over the long term and improve their overall financial situation. We can also assist you obtain a remortgage later as your credit profile gains history.

Borrowers who have no credit history or a limited credit history may be eligible for a no credit history mortgage. This includes individuals who have never taken out a loan or used a credit card before, or those who have a credit score that is too low to qualify for a traditional mortgage. However, eligibility requirements will vary from one lender to another.

To be eligible for a no credit history mortgage, borrowers may need to provide additional documentation to prove their creditworthiness, such as proof of employment and income, bank statements, and letters of reference. They may also be required to make a larger down payment. Speak to our ams: mortgage experts and we will work with you and lenders to find a deal for a mortgage with no credit history, which exactly meets your needs. "If we can't help it's not possible!"

The majority of lenders will ask for proof of income from your self-employed work dating back two or three years. The amount of time you need to be self-employed to qualify for a mortgage varies depending on the lender and the type of mortgage you are seeking. However, some organisations will be willing to lend if you only have one year’s worth of accounts to show.

Examples of other forms of credit, which will be considered as an alternative to a credit history include:

• Loans or credit cards - although it is unlikely that there will be any loans or credit cards payments history, any proof that these were settled in a timely manner would be advantageous
• Payments - car insurance, charitable donations, health insurance, internet, medical bills, mobile phones, pension contributions, rent, student loans, and utility bills
• Proof of income - from regular employment, self-employment, state benefits, investments (e.g., dividend income), child support and any other sources
• Savings - proof of savings, access to a sizable deposit, stocks, and shares investments

The main benefit of a no credit history mortgage is that it can allow borrowers with limited credit history to qualify for a mortgage. This can be particularly helpful for first-time home buyers, recent immigrants, and younger people.

These individuals may have difficulty getting approved for traditional mortgages due to a lack of credit history. No credit history mortgages offer an alternative path to home ownership, allowing these individuals to build credit while also securing a home loan.

Finding a lender that offers no credit history mortgages can be challenging, as not all mortgage lenders may offer this type of loan. One option is to work with a mortgage broker, like our ams: experts. We specialise in these mortgages and will liaise with our portfolio of lenders offering a mortgage with no credit history.

We have substantial experience in working with clients who have limited or no credit history. We have extensive knowledge of the various types of no credit history mortgages available and provide guidance on which option is best for your individual situation.

Even if you do not have a credit history, you can still build a positive payment history by paying your bills on time, such as rent, utilities, and phone bills. This can show lenders that you are financially responsible and capable of making timely payments.

Saving for a down payment shows lenders that you are serious about home ownership and have the financial means to invest in a home. Additionally, having a larger down payment can make you a more attractive borrower, this is even the case if part of your deposit is from family.