Adverse credit is much more common than you may think
Here at The Mortgage Expert, we’ve seen it all.
For over 20 years, we’ve been helping people achieve their dreams of owning their own home. During this time, we’ve helped thousands of people with poor credit histories to secure a mortgage, even those with a history of bankruptcy or a CCJ on their records.
We’ve often noticed many people are worried about talking to us about their mortgage options if they have a history of bad credit. They may be embarrassed or unsure about how we may react.
We want to make sure you feel confident in talking to a member of our team, and we want to reassure you poor credit scores or financial difficulties are far more common than you might think.
How many people in the UK are currently suffering from financial difficulties?
According to the latest money statistics from The Money Charity, between February and April 2023:
“322 people per day were declared insolvent or bankrupt in England and Wales… This was equivalent to one person every 4 minutes and 28 seconds.”
“2,846 Consumer County Court Judgements (CCJs) were issued every day in England and Wales from January to March 2023, a 14.1% increase on the same period on the same period in 2022.”
The cost-of-living crisis, rising inflation and escalating energy costs mean more people than ever are admitting to financial troubles. The Money Report confirms that:
“Citizens Advice Bureaux across England and Wales answered 393,757 enquiries in April 2023.” This was a 13.9% increase compared to April 2022.
Finally, the Money Charity reports:
The average credit card debt currently stands at £2,315 per household or £1,222 per adult.
Being open and honest about your financial situation is the best thing you can do.
Financial issues could impact any of us; after all, no one knows what’s around the corner.
As independent mortgage brokers, our role isn’t just to find the right mortgage lender for you. It’s about risk assessing your finances and checking you can still afford your home even if your circumstances change. When taking out a mortgage, it’s always worth looking at what insurance options are available, from income protection to life insurance, to ensure you are financially protected.
If you have a mortgage and your circumstances have changed, you should always speak to your lender as soon as possible. Being open and honest about any financial changes will help you see how to reduce or adjust your mortgage repayments without the risk of falling into arrears.
“UK Finance reports that 76,630 (0.87%) homeowner mortgages had arrears equivalent to at least 2.5% of the outstanding mortgage balance in Q1 2023, 1.9% up on the previous quarter. Over the last year, mortgages in arrears have increased by 2.5 a day.”
Source: The Money Statistics, June 2023, compiled by The Money Charity
Taking a proactive approach to your mortgage repayments is the sensible approach, and we know lenders will do their utmost to be flexible and understand any changing scenarios.
Could your credit history impact your mortgage options?
Mortgage lending is about risk assessments. For example, if you have a poor credit history, a lender may see you as more of a risk and be reluctant to offer you their best deals.
However, that doesn’t mean it’s impossible to secure a mortgage.
Our expertise and relationships with niche lenders mean we know who to talk to if your credit history is less than perfect. Many lenders may be willing to lend to you, and often these deals tend only to be eligible to mortgage brokers like us. They trust we’ve done our due diligence into your affordability and stress-tested if you could cope with any changing interest rates.
If you’re looking for a mortgage with a poor credit history, please talk to a member of our team.
We can look through your personal credit file and talk to you openly and honestly about your options.
Call us now on 01582 45000.
Alternatively, why not send us a WhatsApp or book an appointment for a time that suits you?
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE