The main things that can cause problems are:
Recent late payments
Late payments can come for a number of reasons, including oversight and financial difficulty. Late payments on mortgages are looked at more seriously than late payments on mobile phone/telecommunications contracts.
Defaults and CCJs
These can vary in seriousness. Some lenders will ignore defaults and CCJs if they are under a certain value, typically around £250 or if they are for mobile phones. But the first question we ask about defaults is “When were they registered?” The reason for this is that the more recent they are, the more of an impact they will have.
Bankruptcy/IVA or any form of insolvency
Typically you would need to have been discharged from the bankruptcy for a minimum of 3 years in order to apply for a Mortgage at reasonable rates. Many lenders insist on 6 years discharged period from Bankruptcy and other lenders may consider applications in under this time.
Reasons behind adverse history
There are many reasons as to why people may experience a hiccup in their finances. This can range from Divorce or Separation, Business Failure or Redundancy or even Ill Health. In many instances peoples finances when taken out prior to these unforeseen circumstances would have been financially feasible and manageable. Sub-Prime Lenders would take this into account when assessing each application with their specialist underwriting process.
We do hear from many other people with different circumstances and different histories. If you do have impaired credit and you are looking for specialist advice please do get in touch even if you have been declined by other Mortgage Brokers or Lenders.
We are driven to provide our customers the highest level of service.