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Finance

You Have Options For Your Mortgage If You Have Bad Credit

Before we get into the complicated world of lenders, poor credit mortgages, and remortgages, let’s first discuss how credit works.  This will help you understand how bad credit can affect your ability to get a mortgage.

How much credit do you need for a mortgage?

How credit scores work

Your credit score is a three-digit number that is calculated based on how much you borrowed and your financial habits over the past six years. This number is provided by credit reference agencies and can be classified as poor, fair or good, very good, very good, excellent, or very bad.

These are some of the things that could lead to a poor credit score.

  • Mortgage payments not received
  • Late or no payment of bills
  • High levels of debt, excluding student loans
  • Credit cards regularly maxed out
  • Registering on the voters’ roll is not an option
  • A poor credit or payment history, i.e. Not having a track record of punctual, regular payments
  • Receiving CCJs or defaults
  • Declaring bankruptcy and entering into an IVA (“Individual Voluntary Agreement”)

All of these apply to the past 6 years. After 6 years, all payment history (including CCJs or defaults) will automatically “drop out” from your credit file. Even if you have missed a mortgage payment more than 6 years ago, this won’t affect credit scores or show up on your credit file.

What credit score do you need to buy a house in the UK with a mortgage?

A mortgage doesn’t have a set credit score. Lenders use information from credit reference agencies about your credit history and payment history but don’t rely solely on these scores.

Your lender will compile your DIP (Decision in Principle) from information obtained from credit reference agencies. They will also review your payment history and examine the answers to the DIP questions. The lender will then create a credit score for you.

Credit scores from credit agencies are not able to influence your mortgage application but they can provide useful information about your credit score. Credit reference agencies that have a very high or excellent rating indicate that there is a greater likelihood that a lender will approve your mortgage application. This means that you will be eligible for better deals. A fair or excellent credit score will make it more difficult to secure a great deal.

What is the impact of poor credit on mortgage lenders?

Excellent credit history or very good credit is a sign of your ability to pay regular mortgage payments. Poor credit ratings can make it more difficult to obtain a mortgage because they could indicate that you are unable to manage your finances.

Remortgaging and Mortgages

A person with poor credit is more likely to have a lower maximum LTV (loan to value) than someone with very good credit.

For the same reason, interest rates for remortgages and mortgages with adverse credit are often higher than standard products.

First-Time Buyers

It can be difficult to find a mortgage for someone with poor credit. Most first-time buyers desire to borrow more than 85 percent. This is the maximum limit that most lenders will offer bad credit mortgage. This will allow you to access more lenders and mortgage products.

Bad credit – the best mortgage deals

Many lenders offer a wide range of products, even in the small lending space for bad credit mortgages.

A broker is required if you are looking to purchase a home or remortgage your bad credit history. Many lenders won’t accept applications from borrowers.

Categories
Finance

The Top Money Saving Tips for Students in 2022

We are nearing the end of 2021 and everything is returning to normal. Schools and universities are slowly opening. Those of you about to enter high school. You will need to prepare to save money for college and university fees. If you don’t make a saving in the last years of high school, it will be a mistake. We have compiled the most money-saving tips that will help you save money over the long term.

The Best Money Saving Tips

Get familiar with your budget

When you first start college or university, it can be difficult to keep track of your budget. You won’t remember how much you spent each month. Even if you create an expense list, you will have a better idea of how much money you are spending monthly. You will first need to track how much money you spend on bills. Next, you’ll need to record how much you have left over to spend on yourself. This could be for things like going out with colleagues, getting essays written for assignments, or decorating your hostile room. Once you have compiled all of your monthly expenses, such as your salary, support from your parents, and maintenance bills, you can organize them. Add all of the money you receive and you’ll be able to see how much you get each month.

Limit the number of times you eat each month

Students are often excited to join college or university for the first time. This can lead to an increase in their exposure and a burden on their pockets. You should limit your outdoor dining with friends and colleagues. If you have a special occasion, coupons such as Texas roadhouse coupon may be available. You will know how expensive it is to eat with five to ten people. With a coupon you can get a discount of 50-40 percent and split the rest with friends.

Time Bill Payments

Students want to be mature and like adults, but sometimes they forget the smallest details. They may forget to pay their utility bill in their dorm rooms. This will result in them being charged 50 to 100 dollars more. This is possible only if you pay all your bills on time. Otherwise, you will have to live in extreme conditions.

Part-Time or freelance job

Some students have full support for their families. There are others who will need to find work or freelance work to meet their daily needs. Many companies are looking for young workers. Positions can range from salespeople to call center agents to receptionists. However, if you do not want to work for a company, freelance work is an option. Freelance work requires patience as freelance work can include content writing, graphic design, development, and many other areas. Numerous teenagers are earning a lot of money and making a name for themselves. Some are even hired by large companies and given a great job.

How to Cook Properly

It can be exhausting and time-consuming to prepare a meal in the early morning. Let’s just say that this will save you lots of money when compared to the food you can get outside. If you decide to get a hot chocolate latte at the cafeteria, or to purchase the hot filling bread that is popular on campus, you’ll end up spending between five and six hundred dollars per month. You can save this money by learning to cook and you can use it elsewhere.

Second Hand Books

Students often forget to consider the cost of books when they decide to enroll in prestigious universities. We recommend you buy second-hand books over buying new ones. They are cheaper and easier to afford than new ones. This will allow you to save a lot of money. You can also use that money to buy small stationary items or notebooks.