Last Updated on 6th August 2020
Finding a bad credit mortgage broker isn’t an easy task. Even experienced brokers who aren’t used to dealing with adverse credit may misinform you.
We constantly receive enquiries from borrowers who have been declined by brokers and high street lenders. Shortly after, our advisors often manage to secure the same applicants great mortgage deals.
There’s recently been an influx of approvals involving bad credit and the market only seems to be expanding. The good news is that the number of lenders willing to work with bad credit applicants is also growing.
Mortgage advisors that understand bad credit typically specialise in the following:
- Arrears & Late payments
- Debt Management Plans
- Remortgages with bad credit
- Multiple credit problems
- Low credit score
Our advisors specialise in bad credit and work with specialist lenders who approve applicants with bad credit every day. This guide will explain what to look for in a mortgage broker. If you need help at any point, simply ask our experts a question.
What is a bad credit mortgage broker?
A bad credit mortgage broker is someone that specialises in adverse credit mortgages. Regular brokers usually specialise in mortgages with good credit. Any mention of bad credit and regular brokers will typically tell clients that they can’t help. This is why using a specialist is advised.
Key differences between conventional brokers and adverse brokers are:
Brokers that understand bad credit:
- Independent & not tied to specific lenders
- Access to the whole market
- Access to exclusive mortgages
- Operates a fair fee structure
- Track record of customer satisfaction
- Works to your deadlines
- Provides accurate, up to date and honest advice
- Doesn’t just send applications for the sake of it
- Matches you to the best-suited lenders
- Works closely with underwriters
- Actively works with specialist adverse credit lenders
- Plenty of experience in bad credit
- Works for you
- Will try and get you the best product
Conventional mortgage brokers:
- Doesn’t have access to the whole market
- Limited to a few lenders
- Tied to certain products
- No access to exclusive mortgage deals
- Charges hefty fees
- Little or no experience in adverse credit
- Says no at the first mention of bad credit
- Sends applications off and hopes for the best
- Outdated advice and information
- Only deals with clean credit applicants
- Works for the lender
- Will try and get any mortgage product
What is bad credit mortgage advice?
Bad credit varies from person to person. You may have one bad credit issue or multiple. There can be many other variables such as how recent your issues were and their severity. Only once a specialist has spoken to you, can they begin to really help.
If you’ve been declined previously, don’t let that put you off. There’s no harm in speaking to an advisor and making an enquiry. Specialists can then try and pinpoint what went wrong.
Not only have our specialists dealt with clients who have previously been declined, but they’ve found great mortgage deals in the process. A specialist broker never applies for the first deal they can get, which is what a lot of industry brokers do.
A broker that specialises in bad credit should move mountains to secure you a mortgage but should also try and find you the best possible deal.
Our experts have a very tactful approach and their success rate is extremely high. This is because your application is placed with the right lender in the first instance, saving time, money and frustration!
My credit is really bad, can I still get a mortgage?
We never give false promises, however what we will say is that we’ve helped many borrowers with bad credit to secure a mortgage. Every situation is unique and we would really need to speak to you in order to answer that question. We are specialists in this field so no matter what situation you find yourself in, we’ll always offer you honest advice.
A lot of the time we can secure a mortgage instantly with the bad credit lenders we work with. Sometimes credit issues may be too severe, to the point where we will be honest and tell you that it won’t be possible at this current time. Nonetheless, we can still help you by giving you advice on how to repair your credit score.
Once your credit score has improved, we can then look at applying for a mortgage. This process usually doesn’t take as long as most people think.
How much do bad credit mortgage brokers charge?
Many brokers that specialise in bad credit often charge huge fees for a mortgage as they often require a lot more work in comparison to regular mortgages. Options for bad credit mortgages in the UK are also limited. Our fees are very competitive when compared across the country.
The reasons our fees are so low compared to others is because:
- We specialise in the UK adverse credit market
- Our experience enables us to know which lenders will be suitable from the start
- As one of the few industry experts, we operate a high volume of mortgages
- We’re able to further reduce fees when insurances are taken
Most fee structures do vary as all cases are different and require varying amounts of time. Across the industry board, the maximum brokers may charge is around 3% of the mortgage amount (£6k on a £200k mortgage).
The lowest fees are usually around 1% of the mortgage and if you do find yourself paying 3% then you’d be paying over the odds. There’s a lot of brokers in the UK that will charge a lot less such as 1% and below, such as our advisors, so it’s worth shopping around.
How to consult brokers that specialise in adverse credit
Some brokers will immediately dismiss applicants as soon as they hear the mention of bad credit. A lot of brokers are misinformed and believe that bad credit cases won’t be approved. We’ve spoken to many people who have had this experience, only to be approved a mortgage after making an enquiry with us.
Brokers in the UK are in fact turning away valid customers simply because they don’t have the time or expertise to deal with bad credit mortgages.
Our brokers are all specialists in adverse credit. Working closely with specialist lenders we’re able to place applications where we’re almost certain they’ll be accepted. If a situation arises during an enquiry where one of our advisors is quite certain that even specialist lenders won’t accept your application, then they’ll advise you on what to do next.
You can make an enquiry with a mortgage advisor below or simply ask a question to start.