bad credit mortgage

Mortgage Arrears

‘Arrears’ is a term used in financial and legal situations, referring to the status of owed payments – and their corresponding due dates. It is used to describe something that has not received its payment by its set due date, so in simpler terms, ‘Arrears’ are overdue payments. If a payment is missed (one or more) the account will be in arrears – for example; a phone bill, or a mortgage.

If you miss your payments on your mortgage, and go into mortgage arrears, you will need to act quickly. Speak to your lender as soon as possible. Once your lender is aware that you are unable to make your repayments in time, they can help you get back on track.

In order to avoid mortgage arrears in the first place, have a look at these steps you can take.

Do a budget. Budgeting can be an incredibly important aid, even if you are not struggling with your money! A budget will organise your money and allow you to see anything extra you could possibly put away to tide you over if things get tight. It allows you to manage your outgoings efficiently, hopefully therefore preventing you from falling behind with repayments.

Getting a mortgage with a low credit score?

Having a low credit score can be caused be a variety of factors. It could be debt/credit agreements you have had in the past that have gone bad e.g. you have missed a series of payments these could have ended up in default (normally 8 missed payments and the agreement has broken down between you a the lender) it could be you have utilised a lot of debt and have several amounts owing to different lenders across a series of credit cards, store cards or loans. You may have several credit cards that run very close each month to their credit limits. Whichever the situation it is very difficult to pin point the exact reason you have a low credit score.

You can try an improve your low credit score by reducing debt, possibly closing accounts you do not use and ensuring you do not miss any payment over time this will help improve your score, however there is no exact way of gauging when this will improve.

Can I get a mortgage with a low credit score?

The simple answer is yes, there are two ways in which lenders check potential borrower’s credit reports this is credit scoring and credit searching.

AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.  THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. View Finance Ltd is an Appointed Representative of Finance Advice Group Ltd, which is authorised and regulated by the Financial Conduct Authority under number 624517 in respect of mortgage, insurance and consumer credit mediation activities only. The Financial Conduct Authority does not regulate some form of mortgages and loans, including most types of Buy to let mortgages and also Limited Company lending. The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. Registered office address: 42 Friar Gate, Derby, DE1 1DA. Registered in England and Wales, company number 11265177.

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