Applying for a ‘bad credit mortgage’ is similar in many ways to applying for a ‘regular mortgage’ or a ‘high street mortgage’. However, there are usually a number of key differences dependent on the severity of the ‘bad credit’ involved.
Most ‘specialist lenders’ who offer ‘bad credit’ mortgages will only deal with specific mortgage advisers with whom they have an existing relationship, that’s why it’s so important to make sure you are dealing with a specialist mortgage adviser who has access to these ‘specialist lenders’ and is comfortable with the qualifying criteria and the type of things they want to see.
The application process
Once you have found a mortgage adviser who is comfortable dealing with these type of bad credit mortgages you can expect to provide the usual documentation you would when applying for a ‘high street mortgage’ such as:
- Photo ID (passport / U.K. Driver’s license)
- Proof of address (recent postal bank statement/council tax bill etc)
- Proof of earnings (recent payslips / SA302’s/ Financial accounts etc)
- Recent bank statements (usually latest 3 months)
- Proof of deposit (bank statement/pensions statement etc)
Dependent on the severity of the ‘bad credit’ you may need to provide more documents and information than you would a ‘high street mortgage’, the more severe the ‘bad credit’ the more documents and information you can expect to provide. This may be things such as:
- Written explanation as to why the incidents of ‘bad credit’ occurred and the dates that the incidents of ‘bad credit’ occurred.
- Written explanation as to how this has been resolved and what measures have been put in place to ensure the incidents do not occur again
- Older bank statements (up to 12 months’ worth)
Your specialist mortgage adviser will be able to help with things such as this and will be comfortable with what these ‘specialist lenders’ will expect to see. Once you and your ‘specialist mortgage adviser’ have gathered all the required information and documentation, the application will be submitted on your behalf and sent off to be looked at by the underwriter.
