Securing a mortgage in today’s climate might seem like a steep hill to climb, so if you have bad credit or a poor financial history, you might think the task is all but impossible. This is not the case, however, and there are ways to get a mortgage in spite of a spotty financial record. In this article, we’ll look at the key questions regarding this, and how you could find the right type of home loan for your specific circumstances.
Yes, there are mortgages that have been designed for those with bad credit – known as bad credit, sub-prime, or adverse credit mortgages. However, because those with lower credit are seen as more of a risk by lenders, these mortgages are likely to come with higher interest rates and you may need to have a larger deposit to help secure one. You may also be limited as to how much you can borrow.
There is no exact minimum credit score needed to secure a mortgage as every lender has different criteria, but of course the higher your score the better. Scores will vary according to the credit reference agency, but three popular ones are Experian, Equifax, and TransUnion, who operate with top scores of between 700 and 999. So, for Experian, a good score would be anything over 700, whereas for TransUnion a good score would be somewhere above 600. 
It is hard to say; people with high credit scores generally pay a lower interest rate on their mortgage, so it can be harder for those with low credit scores to get an interest-only mortgage. This is because they may not be able to provide evidence that they will be able to afford to pay the lump sum at the end of the mortgage term.
If you earn a good income, but your credit score is low, you can take certain steps to improve it in order to get a better deal on your mortgage. For example, take a detailed look at your credit report through companies like Equifax or Clearscore, as they will point out any areas of improvement. Also, try to start paying off any debts you may have, as showing that you are able to maintain regular payments will help show brokers your reliability. Finally, work with brokers who specialise in bad credit mortgages as they can give you more options than standard lenders.
