Lothian Mortgage Service

Offering Impartial Mortgage Advice in Edinburgh and West Lothians

Phone Number: 0131 212 5006

Low Credit Score Mortgages

We offer help and advice for Low Credit Score Mortgages. Applying for a mortgage and going through all the hassle of accomplishing your goal is difficult. It’s even more difficult when you’ve got yourself a number of negative black marks on your credit rating. If you’ve been turned away by others or are afraid to apply, our recommendation is to talk to our impartial broker.

Can I get a mortgage with a bad credit history?

The answer is a definite yes; it is possible to get a mortgage even if you have a bad credit history. It’s true that your options will be more limited than they would be had you a better credit score, but it's not impossible. 

As you may know, lenders will require a credit check before even granting an application for a mortgage. It’s important to know that certain black marks on your credit history are considered more serious than others. If you don't know your credit score, there are a number of free tools you can use to check.

What mortgage is available for people with bad credit?

Some high street banks are almost certain to refuse those with an adverse credit history. There are, however, alternative sources. There are specialist lenders who caters to those who may have fallen behind due to illness, divorce or any of life’s other difficult and unexpected moments.

These lenders have positioned themselves to be more hospitable to those whose credit rating are below average. As these lenders are taking on a greater risk,  they naturally do charge higher interest than most banks, as well as demanding larger deposits. This type of mortgage is known as an adverse credit or sub-prime mortgage. It works in the same way as a normal mortgage. After checking your credit record, the lender will ensure that you can afford repayment o the mortgage by reviewing your household income, expenses, and overall financial situation.

What is the minimum credit score for a mortgage?

All mortgage lenders need to check if you can afford your mortgage before they consider lending you money. In addition to reviewing your credit history, they will also look at your household earnings as well as all your expenses. This will include not only your credit repayments gut regular, fixed expenses such as childcare, council tax, season tickets any other monthly expenses you have.

If you show your potential lender that despite past problems, you are now able to afford the monthly repayment of your requested loan, then you may be able to get a mortgage.

Can I get a mortgage if my partner has bad credit?

This depends on the lender. Some lenders may not extend credit to an applicant under these circumstances while others may have different criteria. In some cases, the lender may extend credit to an applicant based upon his/her ability to pay without including the applicant’s partner.

Improving your Credit Score

It is important to remember that improving your credit score can often be a slow process, but if you persevere, you should be able to find yourself with a much better credit score before long.

  • You must always make any repayments, as well as other expenses i.e. electric, gas, etc.
  • Make certain that you do not exceed your credit limits and try not to get overdrafts.
  • Never make multiple applications for credit over a short period of time.
  • Another important thing to remember is that you should always keep your personal information up to date.