Model of a woman holding a potted lemon tree.
We make the impossible possible

Whatever your credit history, from bankruptcy to county court judgements*, our mortgage brokers are here to get you back on your feet. We have qualified mortgage experts on hand to help you navigate your next steps in securing your mortgage. We know dealing with bad credit is no fun, but you are not alone. We work closely with you to provide you with qualified service and support. Our unique software allows us to find the offers and deals to suit your individual needs. 

Get Started
Insurance Brokers in Harrogate
Why Avail Mortgage Brokers?

Qualified mortgage experts – Our experts are on hand to help you navigate your next steps in securing your mortgage.

We support our clients – Dealing with bad credit is no fun, but you are not alone. We work closely with you to provide you with the right level of service and support to suit your needs. 

Unique software – Our technology allows us to find the best offers and deals available. 

Get Started
 
Avail Mortgage Brokers

Find A Mortgage That Works For You

Here at Avail Mortgages, we understand how important it is to secure a mortgage that works for you. With over 35 years of experience in advising, navigating, and securing mortgages – our experts are qualified to find a solution for all individual circumstances.With the help of a specialist broker, you’ll have access to a wealth of knowledge, information and specialist advice to guide you through the mortgage application process. If you believe your poor credit ratings could hinder your mortgage acceptance – look no further than Avail Mortgages. Our advisors will observe your options, check your eligibility, and assist you in getting onto the property ladder. We have proven experience in tackling bad credit scenarios and are confident that we can deliver the right deal for you.

 

What Options Are Available?

Just because your credit is bad, doesn’t mean your mortgage has to be…

Conventional mortgages tend to require borrowers to comply with strict eligibility criteria and meet affordability assessments. However, it is a common misconception those with a bad credit history cannot get mortgage approval. It is important to seek the advice of a specialist mortgage broker who can direct you to flexible providers who may offer a suitable mortgage product. Both mainstream lenders and specialists now offer loans for people with poor credit, and can take your background into consideration when exploring your options. Do not let your missed bill payments, late payments, or debt management plans deter you from finding a mortgage.

Whatever the reason, specific mortgages for people with poor credit allow you to borrow money, providing you pass the mortgage lenders’ credit checks and meet the lending criteria/affordability checks. But how can you get a mortgage? How does your credit history and credit score come into play? And what interest rates are there on these types of mortgages? At Avail Mortgages, our mortgage specialists can answer all of this and more, ensuring that you get the right mortgage for you.

With our help, you’ll have access to expert mortgage advice. Right from the start, we make the mortgage application process easy, talking you through our most suitable finance options, dependent on your individual situation and financial difficulties. Using our mortgage calculator, we’ll source suitable rates and a range of deals for people with adverse credit, ensuring your mortgage doesn’t add any additional strain to your finances. Our mortgage brokers are there to support you and will do their utmost to reassure you.

To speak to one of our mortgage specialists, please get in touch with us today. We’ve helped clients across the UK in areas such as LeedsHuddersfieldBradfordYork, and Harrogate with their mortgage needs, helping them to find better rates and mortgages that truly make a difference in comparison to their previous loans.

 
What is a bad/adverse credit mortgage?
 

What Is a Bad Credit Mortgage?

Bad credit mortgages allow those with a poor credit history and score to access funds at a higher interest rate – i.e a mortgage for bad credit history. Because you’ll likely have a low credit score – and therefore be seen as a higher lending risk to a mortgage lender* – there will be a limit on how much you can borrow, and you may be asked to provide a deposit of approximately 20-25% of the property’s value, should you be a first time buyer, home mover or are looking to remortgage your property.

When you fill in your mortgage applications, mortgage lenders will look at your history and credit score to determine how well you manage your finances. Along with your annual income, monthly outgoings and savings, mortgage lenders will also ensure that you can afford the monthly mortgage payments in cases of change – such as the mortgage interest rates increasing, or your income going down.

Getting a mortgage isn’t always easy, but with a mortgage broker such as Avail Mortgages by your side, the process becomes a whole lot simpler. With a hassle-free approach that takes your needs into account, our mortgage specialists support and guide you through the mortgage application process. To learn more about the wide range of bad credit mortgages we have access to, please get in touch with us today.

Adverse credit mortgage
 

What Does Bad Credit History Mean?

Your history is a credit record of every credit product you’ve ever taken out, and your propensity to pay that back. These products include loans, mortgages, credit cards, current accounts and even mobile phone contracts. Every time you take out one of these products, it’s reported credit rating agencies. Every month, your mortgage lenders, banks and other lenders report to these agencies stating whether you’ve made payments in full and on time. If you haven’t, and there are missing payments, then this could tally up and lead to you having an adverse credit history. A bad credit history could be caused by factors such as:

Defaults: Defaults are where you fail to make a payment on time, such as credit card payments, personal loan repayments or utility bills*. Though defaults may simply lead to the closure of an account, it can have greater ramifications if money is owed for mortgages. Further, a default stays on your credit history for six years, even if you repay it sooner.

County Court Judgements (CCJs): A CCJ will be reported should you fail to repay a debt that you owe, and other attempts to recuperate the money owed – such as a warning letter or default notice – has gone unanswered*. If you don’t pay back a CCJ in full within 30 days, the CCJ will stay on your credit history for 6 years.

Bankruptcy: Bankruptcy is a declaration that you can’t pay back your unsecured debts, which typically amount to £5000+*. A trustee will have to take over your financial situation, meaning you’ll no longer be chased for the money owed by your creditors, and most of your assets will be sold in order to raise money to pay off your outstanding debt.

Individual Voluntary Arrangements (IVAs): An individual voluntary arrangement is a credit agreement between yourself and your creditors, detailing an affordable mortgage repayments plan.* The money from the individual voluntary arrangement goes straight to an insolvency practitioner, who distributes the money to your creditors. An IVA will stay on your file for 6 years.

When you apply for credit or a mortgage, your mortgage lender will check your history for any missed payments or late payments, as well as your credit score. This can make getting some mortgage products difficult, but this is where a bad credit mortgage can come in handy. If defaults, county court judgements and debt management plans are getting you down, then a mortgage for adverse credit history could be the answer. Our mortgage brokers are here to help you get back on your feet. So, let’s hit the ground running with your bad credit mortgage today.

 

Getting A Mortgage

If you have a bad credit history and credit score, then luckily, there are a number of things you can do to boost your chances of getting a bad credit mortgage, and this includes:

  1. Being Patient and Giving It Time: Poor credit scores will be seen as less cause for concern over time, especially if your financial stability improves*.

  2. Repair and Fix Your Credit History and Credit Score: Establish a pattern of consistent payments and responsible credit usage, so that your score improves.

  3. Be Honest About Your Financial Situation: Mortgage lenders conduct thorough searches when it comes to bad credit mortgages, and trying to hide your poor credit history will not be looked upon favourably.

  4. Apply at a Lower Risk Level: Apply for a mortgage when you have a more stable income, and try to provide a higher deposit. The larger your deposit, the lower your loan-to-value ratio (LTV) too, making you a lower risk to mortgage lenders*.

  5. Keep Your Credit Utilisation Ratio Low: The Credit Utilisation Ratio represents how much credit you’re using compared to how much is available to you*. Most banks and bad credit mortgage lenders advise keeping below a 30% Credit Utilisation Ratio.

  6. And most importantly, speak to a mortgage broker such as Avail Mortgages for suitable rates and mortgage advice.

 

Mortgage Rates: Your Options

When it comes to bad credit mortgage rates, there are various finance options available to first time buyers, home movers and those looking to remortgage. Fixed rate mortgages and discount mortgages are the main mortgage types our mortgage brokers can help you with, though we can also provide you with expert advice on other types too.

cartoon house with mechanic symbol
Fixed Rate Mortgages

With fixed-rate mortgages, you pay the same interest rate for the whole bad credit mortgage deal period*. Two year mortgage deals and five year mortgage deals are most common, and when you reach the end of your fixed term you’ll usually be moved on to your lender’s standard variable rate (SVR).

cartoon house in a shopping trolley
Discount Mortgages

With discount mortgages, you pay the mortgage lender’s standard variable rate, with a fixed amount discounted*. For example, if your mortgage lender’s standard variable rate was 5% and your mortgage came with a 1.5% discount, you’d pay 3.5%. Discount mortgages can be ‘stepped’, as in, you may take out a 2 year deal, and pay one rate for 6 months and then a higher rate for the rest of the mortgage term.

Choosing between a discount mortgage and fixed rate mortgage can be tricky, especially when there’s your financial situation to consider. Let Avail Mortgages help. Our mortgage brokers can source the most suitable mortgage rates around, using our specialist knowledge of the mortgage market, and our bad credit mortgage calculator. Therefore if you’re located in our surrounding areas of Leeds, Huddersfield, Bradford, York, Harrogate or anywhere in the UK and are looking for mortgage lenders, we recommend getting in touch with us today.

 

Bad Credit Mortgage FAQs

  • Can You Get A Mortgage With Bad Credit?

    The mortgage market can be a difficult market to navigate, especially with bad credit. But that doesn’t make it impossible. There are several things you can do to increase your chances of getting a mortgage with bad credit.

    • You can try to improve your credit score by using strategies such as a debt management plan.
    • Apply for a mortgage at a lower risk level and try to provide a higher deposit. The larger your deposit, the lower your loan-to-value (LTV) ratio too, making you a lower risk to the lender.
    • Be honest about your credit history when dealing with mortgage lenders. Honesty will be looked at much more favourably than if you were to try and hide this information.

    It is important to seek the professional advice of a mortgage broker who can direct you to the providers who may be able to offer a suitable mortgage product. Both mainstream banks and specialist lenders now offer loans for people with bad credit and can consider everything when exploring your options with you.

    At Avail, our advisors will observe your options, check your eligibility, and help to assist you in getting onto the property ladderwe are confident that we can deliver a suitable deal for you.

  • How Does Bad Credit Affect Mortgages?

    A bad credit mortgage is just like any regular mortgage, except for the fact there will likely be a lower limit on how much you can borrow* and there may be higher interest rates. You may also be asked to provide a deposit of approximately 20-25% of the property’s value. This is because, unfortunately, you are considered a higher risk to the mortgage lenders.

    Bad credit can make it harder to get a mortgage, but it doesn’t make it impossible. When it comes to bad credit mortgage rates, there are various finance options available for first-time buyers, home movers and those looking to remortgage. Some lenders will view you more positively than others. With the increase in bad credit products, this influx of new adverse credit products into the market has led to increased competition,* too, and rates have decreased as a result.

    If you’re looking for a lender that will help you with an adverse credit mortgage, a high street lender may not be the right place to look. As such, it might be better to speak to a trusted mortgage broker who can discuss your options with you and show you the products available across the whole market.

  • How Does Bad Credit Affect Mortgages?

    A bad credit mortgage is just like any regular mortgage, except for the fact there will likely be a lower limit on how much you can borrow* and there may be higher interest rates. You may also be asked to provide a deposit of approximately 20-25% of the property’s value. This is because, unfortunately, you are considered a higher risk to the mortgage lenders.

    Bad credit can make it harder to get a mortgage, but it doesn’t make it impossible. When it comes to bad credit mortgage rates, there are various finance options available for first-time buyers, home movers and those looking to remortgage. Some lenders will view you more positively than others. With the increase in bad credit products, this influx of new adverse credit products into the market has led to increased competition,* too, and rates have decreased as a result.

    If you’re looking for a lender that will help you with an adverse credit mortgage, a high street lender may not be the right place to look. As such, it might be better to speak to a trusted mortgage broker who can discuss your options with you and show you the products available across the whole market.

  • Can I Port My Mortgage With Bad Credit?

    When you ‘port’ a mortgage you take the rates and terms of your mortgage plan with you when you move house. It is possible to port a mortgage with bad credit, but it will depend on your unique situation and the reason why you have poor credit*. In order to port your mortgage, you will have to apply. This often includes a credit check and an affordability assessment. But, it will depend on your individual circumstances and your lender as some reasons for a poor credit rating are more damaging than others.

    However, it’s not all about your credit score! Other things that your mortgage lender may take into account in your application include your age, employment changes and the type of property you want to move to. These factors all impact the risk a lender is taking on.

  • How To Take Out A Second Mortgage With Bad Credit

    A second mortgage is a secured loan that uses the borrower’s home as security. It is often used to raise money if borrowers are unable or unwilling to remortgage or get a personal loan. Although applying for a second mortgage with bad credit is harder, again it isn’t impossible. However, if you do have bad credit, taking out a second mortgage isn’t advised – obtaining a second mortgage with poor credit will likely lead to higher interest rates and a higher deposit requirement.

    While your credit score is important, there are other factors that lenders use to determine your second mortgage eligibility. You may be able to compensate for your bad credit by having a:

    • Low debt-to-income ratio
    • High monthly income
    • A substantial amount of equity in your home

    If this isn’t the case, it may be worth taking steps to improve your credit score and pay off any outstanding debts you have in order to improve your mortgage options. By speaking with one of our experts, you will get trusted, unbiased advice on finding a mortgage that’s right for you, taking your financial circumstances into account. Whilst we don’t have Second Charge lending permissions, we can refer you on a third-party basis to specialists in this area that will be able to assist you.

  • Can You Get A Shared Ownership Mortgage With Bad Credit?

    It is not easy to purchase property in the UK, especially if you have a bad credit history or have filed for bankruptcy in the past. The shared ownership scheme was put in place to allow first-time buyers who are unable to get a large mortgage. The share you can buy is usually between 25% and 75%. You can buy a 10% share on some homes, with the government owning the remainder of the property*.

    If you have bad credit, applying for the shared ownership scheme can be a little harder but don’t let that deter you. Lenders may be a little cautious as people with bad credit history, unfortunately, are considered to pose a higher risk. This means that those who do offer shared ownership mortgages to people may also offer higher rates, similar to bad credit mortgage rates. They may also require a larger deposit than they would from someone with a better credit rating.

    At Avail, we don’t believe your bad credit should prevent you from getting a shared ownership mortgage. With the help of one of our brokers, you’ll have access to a wealth of knowledge, information, and advice to guide you through the mortgage application process. Get in touch today to start the process and see how we can help.

 

Get In Touch

For a hassle-free approach to bad credit mortgages that takes your financial circumstances into account, please contact Avail Mortgages today. Our mortgage brokers provide help for first time buyers, home movers and those looking to remortgage, as well as those in need of funds. Supporting clients around the UK including areas such as Leeds, York, Bradford, Harrogate, Sheffield and Huddersfield, our adverse credit mortgage brokers will do all they can to help, and provide you with suitable live rates. So, what are you waiting for?