The cost of living crisis is the perfect storm of rising costs driven by high inflation and rising interest rates – the price of energy, food and fuel are all hitting record levels and this is having a negative impact on people’s credit ratings across the country.
Recent research by YouGov has found that 7.91 million people are considered to have adverse credit. This is over 1.6 million more people with adverse credit than the last wave of the research, which took place in Winter 2021.
Can I get a mortgage with adverse credit?
If you have a poor credit rating it can often feel very disheartening when trying to obtain a mortgage. Although different lenders have different criteria for lending money, there are some clear factors 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.
So with a limited number of lenders willing to consider your application it can be difficult to know which way to turn. But all is not lost.
How can we help?
One of the key benefits to using our award winning mortgage brokers is that you get access to more products than you’d get if you went to your bank or building society. In fact we have access to over 30,000 mortgage products through a panel of approximately 70 lenders.
What’s more we’ve now launched a specialist service, helping those with adverse credit. Through this service we provide options for those with active and satisfied Debt Management Plans, CCJs, defaults and secured/unsecured arrears.
If you think you have a less-than-perfect credit history and would like to discuss a current or future mortgage please get in touch with our senior broker, Danny O’Keeffe on 0208 364 3444 alternatively follow this link to book an appointment: https://mortgagesandinsurers.co.uk/get-a-quote/
Annual house price growth turns negative in February, Nationwide
Annual house price growth in the UK turned negative in February, falling to its weakest level since 2012, according to data from Nationwide Building Society.
The figures showed that house prices fell 1.1% year-on-year in February, marking the first annual decline since June 2020 and the weakest the market has been since November 2012.
Nationwide’s chief economist, said that the weak data reflected a “cumulative impact of the financial pressures that have been weighing on households for some time”.
Rates increasing & products being withdrawn.
With the Bank of England likely to increase base rates again this month, many lenders have already begun to increase product rates, with some lenders withdrawing products altogether.
We have already seen The Nottingham increase rates across 11 products, whilst the TSB has withdrawn a number of products, only to re-launch them at increased rates.
We are now recommending clients proceed quickly on any quotes provided as there is a high likelihood that more products will be withdrawn from the market.