Can you get a shared ownership mortgage with bad credit?

Yes, it is possible to get a shared ownership mortgage even if you have bad credit but there will be challenges as there are few lenders that offer Shared Ownership mortgages to borrowers with bad credit. Here’s what you can do:

  1. Check Your Credit file: Lenders will look at your credit history to decide if you’re a good candidate for a mortgage. If you’ve had trouble with late payments or other credit problems such as CCJ’s or defaults, it could make getting a mortgage tougher if they are unsatisfied or have been registered within the past 36 months.
  2. Finding the Right Lender: Some lenders are more flexible than others when it comes to bad credit.  They might consider things like how serious your past credit issues were, how you’ve been managing your money lately, and if you can afford the mortgage payments.
  3. Save for a Deposit: Shared ownership mortgages usually need a much smaller deposit than regular mortgages, this is because the deposit requirement is only based around the percentage share you are looking to purchase and not the whole property value. For example, if you are only purchasing a 25% share then the deposit you will need will be 75% less than if you were purchasing a standard resale property. However, having a bigger deposit can help if you have bad credit.
  4. Think About Interest Rates: People with bad credit will likely have higher interest rates offered. or less favourable mortgage terms. So, we will shop around for you and find you the best mortgage available based on your circumstances.
  5. Repair Your Credit: Our bad credit mortgage specialists will guide you through the best ways to improve your credit score, by doing things like avoiding late payments, reducing your overall debt levels, and checking for mistakes on your credit report can be a good place to start.
  6. Get Help: Adverse Mortgage Advisors will help find out if you are eligible for a Shared Ownership Mortgage with your credit profile and help support you through the application process and will remain by your side until you complete on your new mortgage. 

Even though it might be tough, there are ways to increase your chances of getting a Shared Ownership Mortgage with bad credit. Call our Bad Credit Mortgage Specialists to find out what options are available for you.

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