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Bad Credit Mortgages

Mortgage Options For People With Bad Credit

Think bad credit means you can’t get a mortgage? Think again. With the right financial advice, you can explore more flexible mortgage options and get your credit score back on track.

Understanding your mortgage options can be difficult, especially when you have bad credit. By reading our expert guides, we hope that you can feel more confident about your options and reach out to the specialist mortgage professionals to get the ball rolling.

Posted On: February 2, 2023
Updated On: February 8, 2023

Are Bad Credit Mortgages More Expensive?

Interest rates for bad credit mortgages tend to be higher, making them more expensive. However, this isn’t necessarily set in stone. You may be able to change your credit rating by following professional financial advice.

You may also be expected to save for a larger deposit. This will mean you own a larger portion of the property outright and will pose less of a risk to lenders.

What are bad credit mortgage rates?

The interest rate and deposit amount will depend on your unique circumstances and will vary from lender to lender.

However, that’s where getting advice from a financial advisor and Whole of Market mortgage broker can come in handy. Furthermore, there are bad credit mortgage specialists who can help pair you with the right lender for your circumstances, saving you a lot of time and hassle.

If you’re looking for specific figures, your interest rate will likely fall between 5% – 40%. The average falls between 15% – 30%.

Looking at the bigger picture

Specialist mortgage lenders have more flexible lending criteria. For example, if you have a history of poor or adverse credit but a large income, you may be able to acquire a more competitive interest rate.

Not all financial issues are created equal. For starters, any problems from over six years ago won’t show up on your credit report.

Factors are also categorised as ‘not severe’, ‘severe’ or ‘very severe’.

Having no credit history, low credit ratings and a few low-value late payments shouldn’t cause too much of a problem on their own. In other words, these issues shouldn’t have much of an impact on the interest rate offered.

However, more significant factors on a credit report would include bankruptcy, repossession and county court judgements (CCJs).

What’s the best way to get a mortgage with bad credit?

Bad credit mortgages can be more expensive. But, if you speak to the right brokers and advisors, you should be able to either improve your credit score with actionable tips, or find a lender with more flexible lending criteria.

Book your free initial consultation with the specialist adverse credit mortgage team at Agentis. We offer no-jargon advice and Whole of Market access, including specialist lenders.