Bad Debt
Bad Debt

Top tips to increase your mortgage chances, even with bad credit

August 15, 2021

Applying for a mortgage can be a stressful and complicated time, especially if you have bad credit. However, to help you out we have come up with some top tips to increase your mortgage chances.


Budget trackers

Try and save as much as you can. Having a larger deposit will not only provide you with more competitive interest rates but it will also increase your chance of being accepted for a mortgage.

Since the beginning of 2021, several lenders now offer  95% mortgages for first time buyers. Although this provides greater opportunity to get onto the housing market ladder it is worth notes that these tend to come with a higher interest rates. At the end of the month have a look at your out goings and see where you can cut down to save. Ask yourself is it time to limit your Costa trips and get your coffee fix at home? It may be handy to create a budget planner or download a free template from the internet. This will help keep you on track with your saving, and provide better visibility over your monthly spending habits.


Check your credit report for discrepancies.

Online credit scores and reports are great for giving you insight into what could be impacting your overall score. We recommend setting up an account through sites such as Experian and ClearScore. This will show you all your credit accounts, rating and any discrepancies.


Reduce your debt

Try to reduce your debt as much as possible. If mortgage lenders can see you are only using a small percentage of your available credit, they will be more likely to offer you better rates. This is because you will be seen as a responsible borrower.

This also goes for any overdrafts. It is recommended that you are out of your overdraft for at least 4 months before you apply for your mortgage, the longer you can stay in credit, the better your chance of a mortgage will be.


Make sure you are on the electoral roll where you live

This is an easy step, but it will have a positive impact on your credit rating. The longer you are on the electoral roll in your area the better. Make sure you sign up through your current address as soon as you move in.

This is a simple but effective way of helping to improve your score.


What’s your current employment status?

Although this won’t be mentioned on your credit report lenders will ask you for these details during the application process. If you are only temporary or in your probationary period, wait until you are a permanent member of staff.

If you are self-employed, you will need to have been doing this for at least 2 years. So, if this is you make sure your financial records are all up to date so you can clearly state your income on the forms and provide proof when needed. We have recently written a blog for mortgages for self-employed here


How Macbeth can help

We have a long history of providing advice on pensions, finances and much more. We can help find the best mortgage deals for your situation as well as provide financial and non-biased mortgage advice. Even if you have bad credit, it doesn’t mean you won’t be accepted for a mortgage, but it may mean your choices are more limited. If you can improve your credit rating this will greatly improve your chances of having the choices of many mortgages.


Contact us to find out how we can help with mortgages and advice on buying a home.

Please note  your home may be repossessed if you do not keep up repayments on your mortgage

Related insights

Related insights

View all
Combined Shape
Combined Shape
Group CEO sitting in high back chair looking to camera and smiling
Group CEO sitting in high back chair looking to camera and smiling

Question about technology insurance. Talk to one of the Macbeth team.

Send us a message