Getting a mortgage can be hard if you have bad credit. So, it’s important to choose the right lender. Life-changing events like divorce, unemployment, and sickness can sometimes make you miss mortgage payments or other bills.

When you apply for a mortgage, lenders assess your credit to determine the level of risk associated with lending to you. Their decisions are then based on this risk assessment. It’s important to note that certain bad credit issues have a greater impact on your chances of approval. For instance, a late payment to your mobile phone company won’t affect your application as much as defaulting on a loan or going bankrupt.

If a lender decides you’re a ‘high-risk’ borrower because of bad credit, you could:

• Be asked to put down a bigger deposit
• Be given a less competitive deal with a higher interest rate
• Be turned down completely 

Traditional banks and mainstream mortgage lenders have very strict lending criteria. Most of them are not equipped to handle situations that deviate from their standard norms. However, by working with a specialised bad credit mortgage broker, you can find a lender who understands your unique situation and is more likely to approve your mortgage application.

If you have faced challenges with traditional lenders or have been rejected by your bank, reach out to one of our expert advisers to explore your options