Having a low credit score or a poor credit history would normally mean that someone might not be able to obtain a mortgage or re-mortgage whatever the history is behind it. Trying the normal sources usually termed High Street lenders, would see a decline. Then another lender would be tried and declined again and so on and so forth. This might result in more and more searches getting carried out and inevitably this may go against the credit record and possibly even make the credit score even lower than it was before.

No two High Street lenders have the same scoring system and on top of that, normally lenders use only one of the three main credit reporting systems and there can be different information on each of them, which can lead to even more difficulties in obtaining a mortgage. There are many reasons why an individual’s credit score can be low. Believe it or not, actually having no credit at all can be a big factor in having a low score.

The more obvious reasons for a poor credit file are for having “derogatory information” registered on your file by a lender. This could be anything from one or more late or missed payments whether on your existing or previous mortgage or even unsecured credit such as credit cards. Default notices stay on your file for six years and notify other lenders that you have been in default with credit. A County Court Judgement (CCJ) is where a lender has obtained a judgement against an individual for non payment and a County Court district judge has registered this as such. Bankruptcy is where an individual has been declared as insolvent. Individual Voluntary Arrangement (IVA) is an arrangement made and granted in the County Court to repay outstanding debts at a specified amount and usually over a five year period. Once a default, CCJ or an IVA has been repaid, this will usually show as satisfied on your credit report and won’t normally be removed until the six years from the date of entry have passed. A bankruptcy will be discharged one year after it has been registered but stays on the file as well. Taking Payday loans within the last twelve months is also a possible factor in mortgages being declined. Lenders look at this as an individual not being able to manage their income properly.

There can be many reasons why these events happen. Illness, redundancy, divorce, business failure, or just making some bad decisions.

This is why there are specialist lenders who will consider lending to people who may fall into one of these categories, It is a specific area that at Finance 4 Homes Limited, we specialise in.

So, if you are looking to consolidate debt, raise capital for Home Improvements, or any other legal reason. Then get in touch to see if Finance 4 Homes Limited can help.

THINK CAREFULLY ABOUT SECURING OTHER UNSECURED DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP PAYMENTS ON YOUR MORTGAGE

Call us today on 020 3002 0933 to find out more.