Buying a house with bad credit

Buying a house with bad credit can be challenging, but it’s not impossible.

Purchasing a property requires having money for a deposit, a solid history of paying your bills over at least the past three months and a steady income. You’ll also need to meet the lender’s criterion requirements. While higher credit scores earn more favorable loan terms, it's still possible to buy a home with bad credit.

You might think you have bad credit because you’ve been rejected for credit in the past. But remember, different lenders have different criteria for lending money – some lenders may see you more positively than others. So there’s no hard and fast rule of what’s considered bad credit. However, there are certain factors on a credit report that would make most lenders think you’re a higher risk – like missing credit card payments, defaulting on a loan, and applying for credit too often.

If you think you have bad credit, it’s a good idea to sign up to Checkmyfile to get your multi agency credit report – this will give you an idea of your credit situation and how lenders may view you.

If you want to find out your options for a mortgage with poor credit, contact us to speak to one of our friendly mortgage experts.