Obtaining a mortgage can be difficult if you have a history of bad credit, debt or financial problems. These issues pose particular problems in obtaining a suitable interest rate or getting a competitive quote.
It is still possible to get a mortgage, even if you are suffering from debt problems or have a poor financial history.
Things to consider when getting a mortgage
Even if you are able to take out a mortgage amid financial difficulty or bad credit, you may face restrictions on the amount of money you can borrow and the interest rate at which your repayments are set. Acceptable reasons for getting a mortgage, even during periods of financial difficulty, include:
- To re-mortgage your home
- To move to a cheaper home to reduce debts
- To re-mortgage to pay off existing debts as part of a debt solution plan
It is not advisable to think about getting a mortgage if you are intending to use the mortgage to help pay off creditors outside of a formal agreement. Nor should you think about getting a mortgage as a way of borrowing more money or to invest in the stock market.
It is important to think carefully about getting a mortgage, as failing to pay back the loan may result in your home being repossessed.
Information and advice: how to get a mortgage
If you would like to find out more information on how to get a mortgage visit the Council of Mortgage Lenders website.