Adverse Credit Archives - RatedAdviser.co.uk

Can I get a mortgage with payday loans?

If you are looking for a mortgage and you have a payday loan, you may find it difficult – but not impossible – to get approved for a mortgage. Let’s look at what payday loans are and why some mortgage lenders may decline your application if you have one of these loans.

The attraction of payday loans

Payday loans are popular in some quarters because they offer the chance to borrow sums of between £50 and £2,000. The repayment period is short – typically the next month, or next payday, hence the name. Loans can be arranged at very short notice, invariably online.

Even if you have a poor credit rating, you may still be approved for a payday loan – and you rarely have to wait any time at all before receiving the cash.

No questions are asked about why you need to borrow the money and there is no restriction on how you choose to spend it.

The drawbacks

According to a report by the Financial Ombudsman Service on the 12th of June 2020, …

How an adverse credit broker can help you get a mortgage

If you have ever missed a payment or defaulted on the repayment of debts or credit. If you have ever had to manage your debts by reaching an Individual Voluntary Arrangement (IVA) with your creditors. And especially, if you have ever declared bankruptcy - you are likely to struggle to get a mortgage.

In the circumstances described, you are said to have adverse credit – and that is what makes getting a mortgage more difficult. Any lender will look to your record of managing debt and other lines of credit as a measure of your responsibility and reliability towards any new lending in the shape of a mortgage. This is a measure of your creditworthiness.

Indeed, the industry’s regulator, the Financial Conduct Authority (FCA) advises its registered members on the need to conduct creditworthiness checks.

The biggest impact if you are in search of a mortgage is that you are going to encounter more difficulties, fewer lenders prepared to entertain your a…

Can I get an adverse credit buy to let (BTL) mortgage?

An adverse credit buy to let (BTL) mortgage is just what it says – a buy to let mortgage for someone who has an adverse credit history. Can you get one? Yes, you can – though you might have to look a bit harder than normal.

Mortgages and your credit history

When you apply for any kind of mortgage – including a BTL mortgage – one of the principal investigations any lender will make is about your credit history. Your credit history indicates how you have managed debt in the past, whether you have made repayments on time, or if you have missed some altogether – all as a way of trying to determine whether you are likely to repay the mortgage loan for which you are now applying.

If you have defaulted on the repayment of past debts or credit, had to make individual voluntary arrangements (IVAs) with creditors, received county court judgments (CCJs) against you, or ever declared bankruptcy, you will be given a low credit score. A low credit score means it is…

Can I get a mortgage with an unsatisfied CCJ?

If you owe someone money, they may apply for a County Court Judgment ordering you to pay it back. Those orders typically go by the common term of CCJs. Can I get a mortgage with an unsatisfied CCJ this post will explore this in more details.

As Citizens Advice warns, once you have a CCJ against you, it is likely to affect your credit rating – so, making it challenging to secure credit in the future and, most critically, a mortgage.

Simply having a CCJ against you, though, is by no means the end of the story. A record number of CCJs were issued in 2019, reported the Guardian newspaper recently – a volume that has doubled since 2012. A CCJ alone may not prevent you from getting a mortgage.

What is taken into account?

There is little doubt that a CCJ adversely affects your credit rating – and a healthy credit rating is the route to success in obtaining any kind of mortgage. The CCJ appears on your credit report, and that is the information held…

Can I get a mortgage with satisfied CCJ?

A record number of CCJs – or County Court Judgments – were issued in 2019, according to the Money Expert. The total of 1.17 million CCJs issued represented £1.7 billion of debt, an 8% increase in the comparable figures for the year before.

With so many individuals likely to be the subject of such judgments, therefore, it might be helpful to examine just what they are and address whether it is possible to get a mortgage with a satisfied CCJ.

What is a CCJ?

If someone – an individual or a company – believes that you owe them money and you have not responded to their requests for payment, they may apply to the county court requesting an order that you pay the amount owed.

The process is relatively straight forward, as is the communication of any order made by the County Court. As the official website explains, the CCJ is simply sent to you by post, at your last known address, stating:

the amount you owe; how to make payment – b…

What Credit Score For A Mortgage Is Needed?

What Credit Score For A Mortgage Is Needed? How is your credit score calculated?

It is calculated using the different types of data from your credit report : Minimum Credit Scores There is no official minimum credit score since lenders can (and do) take other factors into consideration when determining if you qualify for a mortgage. This posts look at What Credit Score For A Mortgage Is Needed in more details.

Other factors include type of job you have, how long you have been in your job. What amount of deposit you have. In some cases even the address you live at and how long you have been at the address can affect the decision.

There are things you can do in preparation but of course, it doesn't always work out that way, but if you have the time to do things like check your credit report (and fix any mistakes) and pay down debt before applying for a mortgage, it will likely to make getting a mortgage easier.

Can you still get a mortgage wit…