5 Unknown Facts about Mortgage with Bad Credit

By July 20, 2019
get mortgage with bad credit

‘Mortgage’ a term that is small as a word but quite bulky as an obligation. When it comes to applying mortgage with bad credit in the UK, oh! The situation seems to act uncertain. Being one of the most sought-after financial products, the mortgage is also a subject that encapsulates countless unknown facts.

The unknown things give way to uncertainty and you miss to get what is exactly required.

The information below is to show the other side of the coin to disclose some ‘not known before’ facts on mortgage with bad credit.

  • It is possible to get mortgage despite bad credit on certain conditions

Most of the people think that it is absolutely impossible to get mortgage with a poor credit rating. They lose hope before exploring the possibilities. The prime reason behind this is the prevalent perception accompanied by the established practices. When it is difficult to get even a short-term loan without good credit, how can one qualify for such a long-term loan?

The reality never replicates misconceptions and myths and this is applicable in this case too.

It is always possible to get funds in spite of less-than-stellar credit score performance. IF YOU HAVE A GOOD REPAYMENT CAPACITY against the loan amount, the approval on your application is sure to come. Next time if you ask someone ‘can I get a mortgage with bad credit’ in the UK, bring this point in mind. You will feel better and you get your answer at : https://www.shinemortgages.co.uk.

  • You can avoid search footprints with soft credit check

The credit records of a bad credit person cannot bear hard credit check as it leaves mark or search footprint. In this case, if the person gets rejection on the loan application, it shows on the financial records. But nowadays some online lenders provide soft credit check which leaves no mark on the credit file of the applicant.

In place of credit check, the lender takes few details, for instance – employment stability proof, current income status and bank statements. Soft credit check is actually an advanced approach to establish the fact that credit score is not the only decisive factor. What is the use, if a person has good credit score but has a low income and fails to prove repayment capacity?

The finance industry (through online lending methods) is now giving attention to soft check policy. There are better chances that in future, more finance companies can respond positively to this futuristic approach.

  • Mortgage calculator gives just an estimation of total loan cost because…..

If you think that by checking figures on a loan calculator you can know the exact total cost then you are wrong. A loan calculator is just an estimation of the loan deal not the absolute result, as it does not include the affordability check. It is just a financial tool, which responds to the figures and numbers that you put in its columns. The obtained result from a calculator is based on some very basic details that are not sufficient to decide if you can really qualify for the mortgage or not. That is the later stage, which is detailed and rational.

  • If bad credit situation is inconsistent, lender can give more relaxation in rates

The mortgages are customised, which you all know but what is new is its plausible nature towards bad credit scorers. If you have a low credit rating, it is necessary to know that you can get more relaxation in rates. If your poor credit situation is inconsistent, the lender or lending company can consider your application to give lower rates. The main cause behind this is the fact that says the applicants, who are not intentionally irresponsible in their financial behaviour, should get a fair chance. Circumstances can happen to everyone and anyone. This is a healthy practice to follow and helps to create a better financial atmosphere for the borrowers who are genuine but just became the victim of situations.

  • You do not need to go to a broker always

Exactly, if your credit rating is poor, that does not mean that broker is the only rescuer. Just look around you and see how fast the finance world is changing. The direct lenders that are available online can fulfil your purpose without any broker bridge. There is no need to waste huge money on brokerage. In fact, there may be some unethical brokers in the market, they pretend to be your helper and make big promises. In reality, they trick you to grab your money in the name of procedures and then vanish. The mortgage deals nowadays are available online. Application and approval decision comes online and the rest of the procedures go through face-to-face meetings with the lender.

Applying for mortgage provokes many questions in your mind. From the well-known ‘can I get a mortgage with bad credit to the newcomer, ‘do mortgage lenders deal online’ many questions keep you restless in nights. Perhaps the information will clear a big part of your confusion through the revealing facts above.

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