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Mortgage Advisor & Director
Securing a mortgage with bad credit can be challenging but the good news is that there are brokers who can tip the odds in your favour.
Bad credit mortgage brokers are ideally placed to help people in this exact situation, and in this guide, you will learn what these advisors can do for you, how much their services cost, and how to quickly access one through Teito.
What is a bad credit mortgage broker?
A bad credit mortgage broker is a mortgage advisor who specialises in helping people with poor credit secure home finance. They offer the same services as regular brokers, providing bespoke advice to borrowers, recommending mortgage deals and acting as an intermediary between the customer and the lender, but their niche expertise is what sets them apart.
In addition to providing general mortgage advice, a bad credit broker can help you:
- Build and repair credit
- Find specialist lenders for people with adverse credit
- Secure exclusive deals for bad credit borrowers
- Explore if there are any schemes you could apply for
- Identify the best time to apply based on your credit situation
- Help homeowners consolidate debt into their property
As well as arranging mortgages for customers who’ve had credit issues in the past, these specialist advisors can also help you remortgage with bad credit and secure other financial products that could help you in the immediate term, such as equity release and secured loans.
Speak to a bad credit mortgage broker today
Why would you need to use one?
People with bad credit often turn to specialist brokers if they need to apply for a mortgage or a remortgage. This is because going directly to a lender without professional advice comes with a risk of rejection, ending up with a high rate or having to put down extra deposit.
If you were to approach a lender at random, your credit issues might trigger an automatic rejection, and this could mean further marks on your credit reports. Some lenders aren’t well equipped to provide mortgages for people with bad credit, while others might raise the interest rate they’re prepared to offer or ask for extra deposit to offset the risk.
Luckily there are specialist bad credit mortgage providers who can take a more flexible approach, factoring in the age, severity and reason for the credit issues when making their lending decision. The best way to find these lenders is through a bad credit mortgage broker.
Consulting with a bad credit mortgage advisor before you apply for home finance is recommended if you have any of the following issues recorded on your credit reports:
- Late payments
- No credit history
- No credit score
- Missed payments
- Defaults
- Debt management plans
- County court judgements
- Individual voluntary arrangements
- Arrears
- Multiple credit problems
- Repossessions
- Bankruptcies
You can check if you have any of the above on your record ahead of your broker appointment by accessing a free trial through our affiliate partners checkmyfile.
How to find a bad credit mortgage broker
You can access a bad credit mortgage broker through Teito once you’ve sourced the mortgage deal you want via our service. They are on hand to provide expert advice, make sure you’ve selected the best interest rate that you qualify for, and find the ideal lender for you.
We have brokers on our books whose specific area of expertise is bad credit. You can rest assured that your mortgage advisor will have the necessary credentials, including:
- Expert knowledge about all forms of bad credit
- Deep working relationships with specialist lenders
- Access to exclusive rates and deals for customers with adverse
- Whole-of-market knowledge and access
- The right qualifications, including CeMAP or equivalent
Ready to source your mortgage deal and access advice from a bad credit mortgage specialist? Make an enquiry with us to kick things off with a free, no-obligation chat.
Looking for a broker in your local area?
We can accommodate this if using a local bad credit mortgage broker is your preference. We have advisors who are well placed to help customers in the following locations:
- London
- Bristol
- Halifax
- Liverpool
- Manchester
- Birmingham
- Stoke-on-Trent
- Yorkshire
- Scotland
- Northern Ireland
- And many other UK towns and cities
Your bad credit mortgage broker will work through your preferred channel where possible, whether that’s video calling, email, phone, and even face-to-face if that best fits your needs.
While we will aim to pair you with an advisor near you, if that is your preference, you don’t necessarily need to use one in your local area. Brokers can arrange mortgages from anywhere in the UK, and the ideal advisor for you might not be one in your neighbourhood.
Preparing for your broker appointment
It can be helpful to have the following documents prepared ahead of an appointment with your bad credit mortgage broker. Some of this paperwork will only be needed for the full application, but it can save time in the long run if you have it to hand for your consultation.
- Proof of income (payslips)
- ID and proof of address
- Three months’ bank statements
- Proof of deposit
- Your credit reports
If you’ve had previous bad credit that has now been satisfied, it’s a good idea to have proof of this to hand, such as a certificate of discharge.
How much will it cost?
Your initial consultation with your bad credit mortgage broker will be free with no obligation to proceed. Most advisors will charge a fee based on a small percentage of the mortgage amount - they will be fully transparent about the overall cost during your initial chat, and you won’t have to pay a penny of it upfront, only upon mortgage offer or completion.
Are there no-fee brokers available?
Most bad credit mortgage brokers charge a fee as cases involving adverse are typically more complex and can take longer to arrange. However, it is still worth sourcing a mortgage deal and getting in touch with us if you think you have no budget to cover a broker fee.
Special arrangements can be reached on a case-by-case basis, and many of our customers who believe cost to be a barrier are often surprised to hear they have options.
It’s also worth pointing out that the majority of mortgage borrowers who use a broker end up in pocket overall, due to the amount they save by securing a lower interest rate.
Why use one of Teito’s bad credit mortgage brokers?
Not all mortgage brokers are equal. We have advisors who specialise in bad credit and can boost your chances of getting approved for finance, even if you have severe adverse.
But that’s not the only reason to choose Teito for your bad credit mortgage needs. Here are some of the other benefits:
- Access to the entire bad credit market, including exclusive deals
- Source your own mortgage with experts on hand if you need them
- Get bespoke advice about your credit situation and how to improve it
- We are five-star rated on Google and leading review websites
Ready to compare rates and deals online and access a specialist bad credit mortgage broker? Make an enquiry with us to get started with a free, no-obligation chat today
FAQs
Yes. Some of our mortgage brokers are experts in both Shared Ownership and bad credit, and speaking to one of them is highly recommended in niche circumstances like this. Your broker can explain how the scheme works and compare it with every possible alternative to help you make an informed decision about whether it’s your best option.
If you have adverse credit, there could be other options to consider, like the First Homes Scheme or using a guarantor, and a broker can help you choose the right course of action.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.