How can we help you.
It is possible to obtain a mortgage, even with a history of bad credit. During the mortgage
application process, lenders conduct a credit check to assess the level of risk associated with
lending to an individual. The lending decision is largely based on this risk assessment, with
higher-risk borrowers perceived as more likely to default on their repayments and therefore
less likely to be approved for a mortgage.
Not all bad credit issues carry equal weight when it comes to obtaining mortgage approval.
For instance, a late payment on a gas bill is less detrimental than defaulting on a mortgage
or going bankrupt. If a lender determines that an applicant is high-risk due to bad credit,
they may make an offer for funding at a higher rate, they could ask for a higher deposit, or
insist on a fixed-rate mortgage to help you budget.
Fortunately, there are options available for those with bad credit. Traditional banks and
mortgage lenders often have strict lending criteria that may not accommodate those with
non-conventional financial histories. However, specialised bad credit mortgage brokers such
as Prestige Private Finance can connect borrowers with lenders who are experienced in working with
individuals in similar financial situations and are more likely to approve their applications.