It's no secret that the recent recession and downturn in the economy has hit many people hard, and it's made it even more difficult for individuals to obtain credit lines and mortgages. Young people and people with a poor credit history in particular have found it even harder and in a lot of cases are only able to rent rather than purchase a property.
In the main, the reason why a mortgage is declined is because of the applicant having a poor credit history. When a lender considers any type of application, the very first checks made will be credit file reviews. If there is any adverse information on an applicant's file, such as CCJ's or unpaid loans or credit cards for example, then this makes the applicant more of a risk to a lender. These types of things can lead to an application being declined.
When an application is rejected for whatever reason, a record of this is placed upon the applicants file. As a result this can mean the file is in some cases worse than it was in the first place and can mean that any further applications are also rejected. Not surprisingly this can leave no other option than for the applicant to rent rather than buy.
However, even in the current climate there are limited lenders who deal with and specialise in funding mortgages for individuals who do have some history of bad credit. These types of lenders do consider giving mortgages to applicants who find themselves in this situation and each case is dealt with and judged upon its own circumstances.
Generally speaking, someone who may have suffered issues concerning late payments or bankruptcy, but several years later has shown to become more financially stable, could be considered. As with any mortgage application, it's vital to have all the information upfront so our brokers can deal and place clients with the correct lenders and establish quickly the best route to take.
Placing these types of mortgages can usually be done in the same amount of time as say a high street mortgage. In a lot of these cases the lender is more inclined to ask for more information about the client, in the main looking for information to support the fact that the clients financial situation is back on track and in good order. Our broker is experienced in assisting clients with previous credit issues and has been successful in helping those obtain a mortgage that have previously been declined.