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It’s not easy to secure a mortgage if you have a bad credit score. However, hiring a mortgage broker can help you secure a loan much faster and easily as well.
How do I get mortgage despite my bad credit score
When you are using a mortgage broker they will ensure that they search the complete market to get the best mortgage deal for you. They will offer you valuable and experienced advice for all your current requirements. Pus the guidance which you get from their expert advice is enough to help you secure loan on your terms.
What factors contribute to a bad credit score?
The credit score is usually calculated as a whole and cannot be attributed to just one or two factors. There is a series of information which would contribute towards your credit score.
A person who is not on the electoral roll will have a bad impact on the credit score
Court records either new or previous
A history of defaults and missed payments
If you have changed addresses and failed to mention it, it would again reflect on your credit score
Previously declined credit applications
Your debt which you currently owe and the amount which remains to be repaid
Though you may try to improve you credit score but any lender who wants to offer you a loan would be taking a record of the previous six months at least. However if you have time on your hands you may try to improve your credit score but for someone who’s pressed for time, hiring a mortgage broker is the best way to go about it.
A mortgage broker knows certain lenders who are more sympathetic towards people with a low or bad credit score. Their good relationship with these lenders enable them to help you secure a loan, just when you had given up all the hope of getting one.
Loan to value for bad credit mortgage
Lenders use the loan to value ratio for determining how much mortgage an individual can get in lieu of the property. In simple words it helps determine how much deposit you need to pay in order to secure the mortgage. For people with a bad credit score it is relatively important that the loan to value ratio is relatively small because the less amount you need to borrow the more are your chances of securing a mortgage.
The amount which you would be allowed to borrow needs to be determined by the lender. Factors like your income, your ongoing credit commitments and the number of dependents you have all play a major role.
All in all the lender wants to assess whether you would be able to repay the loan on time. However this may vary from lender to lender and that is exactly why you need to use a mortgage broker to help you secure a mortgage especially if you have a bad credit score.