Can We Still Buy A House?
You have always paid all your bills on time.
You have a perfect credit score.
Your partner, on the other hand, has a bad credit rating, whether that is because of some financial mistakes in the past, or that they’re currently working to correct, your dearest’s credit score is not something to get excited about.
You don’t have to give up on your dreams of a new home, even if your spouse has adverse credit. Have a look at the following tips on how to get a mortgage with bad credit and tips for building up your bad credit score.
Understand why your partner’s credit score is low
There are some things you can do, which could improve your credit rating and possibly increase your chances of being approved for a bad credit mortgage.
But here are a few simple steps that could help in the meantime.
- Make sure you’re on the electoral roll.
- Pay your bills on time and in full.
- Close any credit accounts you don’t use.
- Consider applying for a credit builder credit card to improve your credit rating.
- Sustainable borrowing with a guarantor loan can also improve your credit score.
- Check your credit report regularly to make sure that all the information is correct. If you notice any errors, contact the relevant lender and ask for them to be corrected.
Unfortunately doing all of these things is no guarantee that your credit score will have improved enough to be approved for a bad credit mortgage. It takes time for your credit score to improve if you have been rejected multiple times or missed multiple repayments.
Each mortgage provider will have their own criteria for eligibility, luckily here at Plus Financial Solutions, we have expert advisors with years of experience in bad credit mortgages who are waiting to help.
Joint or Single application?
If your partner has bad credit this could affect your ability to get a mortgage together.
If you’re not sure whether you should apply for a mortgage together, here’s what to consider.
When you apply for a mortgage, your partner’s and your credit scores and history are taken into account. If you have good credit but your spouse’s credit is not perfect, you might find your mortgage application being declined or coming with a higher interest rate.
Although many couples find they need the income of two people on a mortgage, some lenders allow individuals to get a mortgage on their own. This can be a good option for couples that would not otherwise qualify for a mortgage together.
If you’re unable to qualify for a mortgage on your own, or your partner wants to be on the mortgage, you’ll need to work toward improving your credit scores.