You are using an older browser version. Please use a supported version for the best MSN experience.

How can I get a mortgage with bad credit?

Daily Express logo Daily Express 2 days ago Aliss Higham
UP NEXT
UP NEXT

Record house prices are pushing countless people further and further away from the reality of owning their own home. But the process can become significantly more tricky for those with a poor credit score. To make life easier - but that doesn't make it impossible. Express.co.uk readers have been offered exclusive advice from financial comparison website NerdWallet on what you can do to finance your dream home if you have bad credit.

Check if you can get a standard mortgage

Many home hunters are put off applying for standard mortgages if they have poor credit - and even though being rejected can damage your score further, taking the leap could actually save you a considerable amount in the long run.

Tim Leonard from NerdWallet told Express.co.uk: "You may feel that you won't be able to get a standard mortgage, but it's always worth enquiring to see what is actually possible.

"If you can get a standard mortgage as opposed to a 'bad credit mortgage' then you are likely to get more favourable terms to your agreement.

"To do this, find out your up to date credit score and profile and talk to a mortgage expert to see how this fits with the current mortgage market."

READ MORE: The 17th-century Isle of Vaila mansion is for sale for £1.75million!

Key handover © GETTY Key handover For sale sign © GETTY For sale sign

Find a specialist lender

If a standard mortgage isn't possible for you, you need to look further afield at specialist lenders for those with less favourable credit scores.

There is no hard and fast rule to what is deemed bad credit, and specialist lenders will take a look at your overall picture to see what they can do for you.

Generally speaking, credit lenders who deem your history to be unsuitable will want a large deposit and proof of a good income - but sometimes even this isn't enough.

UK mortgage lenders © EXPRESS UK mortgage lenders

Reassess your budgeting

Lending more to your savings for a home will significantly boost your chances of getting a mortgage, as a large deposit is often required if you have bad credit.

Mr James advised Express.co.uk readers: "Read through monthly bank statements and note down what you spend each month on

bills, food, entertainment etc.

"If you can save money by shopping elsewhere or cutting back on luxuries, this could help you meet your monthly mortgage payments or contribute towards a deposit."

DON'T MISS

Energy bills: 'Simple' radiator trick to help save money on bills [EXPLAINER]

Woman 'absolutely devastated' by scam tactic - 'I broke down in tears' [REPORT]

Nine simple ways to cut your fuel spend [INSIGHT]

For sale sign © GETTY For sale sign

Take the right steps

Ensuring your credit gets better over time is easier than you think.

One of the easiest ways to instantly boost your score is registering yourself on the electoral roll - it helps lenders confirm your name and address, so your score will increase as a result.

Check your credit report to make sure any information held about you is correct - if it isn't, you can dispute it and if successful, it will be removed from your report.

AdChoices
AdChoices

More from Daily Express

image beaconimage beaconimage beacon