Monthly Archives: April 2023

Getting a mortgage with bad credit

Obtaining a mortgage becomes more challenging and costly

When individuals mention having bad credit, they often refer to possessing a low credit score or negative elements in their credit report. These factors can make obtaining a mortgage more challenging and costly. Reasons for a poor credit rating may include late or missed payments, county court judgments (CCJs), or numerous credit applications within a short period.

Additionally, if you’ve never borrowed money before, your lack of credit history could result in a low credit score. So when applying for a mortgage, your credit score is one of the key factors that lenders consider. A low credit score can make it difficult to secure a mortgage, and even if you are approved, it could mean higher interest rates and less favourable terms.

Fixed rate mortgages

Is now the right time to fix and for how long?

In the realm of mortgages, a fixed rate mortgage refers to a financing option where the interest rate remains unchanged for a set initial period, which could span anywhere between two to five years, and occasionally longer.