BELFAST CITY CENTRE: 028 9013 7392 | EAST BELFAST OFFICE: 028 9560 9410 | ORMEAU ROAD, BELFAST: 028 9521 9349 | LISBURN RD BELFAST: 028 9521 9351 | DROMORE: 028 9210 6060 | LISBURN: 028 9279 4300 | GLENGORMLEY: 028 9072 7636 | ARMAGH: 028 3743 0770 | LURGAN: 028 3898 4004 | DUNGANNON: 028 8747 0270 | COALISLAND: 075 6180 7334 | COOKSTOWN: 028 8673 1055 

Contact Your Local Branch

BELFAST, CITY CENTRE: 028 9013 7392
BELFAST, EAST OFFICE: 028 9560 9410
BELFAST, ORMEAU ROAD: 028 9521 9349
BELFAST, LISBURN ROAD: 028 9521 9351
DROMORE: 028 9210 6060
LISBURN: 028 9279 4300
GLENGORMLEY: 028 9072 7636
ARMAGH: 028 3743 0770
LURGAN: 028 3898 4004
DUNGANNON: 028 8747 0270
COALISLAND: 075 6180 7334
COOKSTOWN: 028 8673 1055

Am I Eligible for a Mortgage? Your Questions Answered

by | May 6, 2024 | Uncategorized | 0 comments

In recent years, climbing onto the property ladder has become increasingly challenging. Various factors now impact our ability to save for a home deposit and manage mortgage repayments amid growing financial pressures and uncertainty. At The Mortgage Clinic on Lisburn road Belfast, we understand these challenges and are here to help.

Many people wonder if they’re even eligible for a mortgage anymore. Fortunately, there are still opportunities to secure a property deal, despite these hurdles. We have compiled a detailed FAQ guide on mortgage eligibility to address common concerns and provide clarity on what it takes to qualify for a mortgage today.

Can I Get a Mortgage with Bad Credit?

It’s certainly more challenging to secure a mortgage with bad credit compared to having a clean financial record, but it’s not impossible. Your credit history plays a significant role in how traditional lenders like banks and building societies assess your mortgage application. A strong credit check is typically required, and the outcome heavily influences whether you’ll be accepted or rejected.

Even if you currently have a stable income and a deposit ready, a poor credit history can lead to rejections from many lenders. If you’re considering applying for a mortgage through conventional channels with a less-than-perfect credit score, immediate improvements to your credit might not be feasible. Credit building is a gradual process, and even with improvements, approval is not guaranteed.

What Mortgages Can I Apply for with Bad Credit?

For those with adverse credit histories, certain lenders specialise in offering mortgages tailored to your situation. These adverse-credit mortgages are designed to help individuals who might not qualify for standard mortgages. However, these lenders mitigate their risk by requiring a larger deposit and charging higher interest rates.

Here at The Mortgage Clinic on Lisburn road Belfast, we are committed to helping you navigate the complexities of applying for a bad-credit mortgage. Our experts can offer guidance tailored to your specific financial situation, helping you find the most suitable deal.

What Credit Score is Needed for a Mortgage?

There is no specific credit score that guarantees mortgage approval, as each lender has their own thresholds for what constitutes an acceptable credit risk. This variability means that what one lender may consider an adequate credit score, another might not. Generally, a higher credit score improves your likelihood of passing a lender’s credit assessment.

Before applying for a mortgage, it’s wise to review your credit score with a reliable credit reporting service. This step will help you gauge your current financial standing and determine if you need to improve your credit score. Utilising services that offer free credit reports, can be extremely beneficial. Remember, being declined for multiple mortgages can negatively impact your credit score, so it’s important to apply only when you are reasonably confident of approval.

At The Mortgage Clinic on Lisburn Road Belfast, we encourage you to check your credit score as it not only provides clarity about your financial health but also reveals any potential errors affecting your score. Knowing your credit score is crucial in helping you choose the right mortgage products for your financial situation.

Can I Get a Mortgage with an IVA?

An Individual Voluntary Agreement (IVA) on your credit history can pose significant challenges to securing a mortgage. An IVA indicates that you’ve previously struggled with debt and have arranged a legally binding agreement to repay creditors over a period, which can be seen by lenders as a red flag. The presence of an ongoing or recent IVA usually signals to mortgage providers that you have substantial existing debts and may struggle to manage additional mortgage repayments.

IVAs typically remain on your credit record for six years from the date they were registered. While this can impact your mortgage application, it’s not necessarily a permanent barrier. After your IVA has been resolved, you may choose to wait until it is removed from your credit record to improve your chances of a successful mortgage application, or you could look for a specialist mortgage provider willing to consider your application despite the IVA.

At The Mortgage Clinic on Lisburn Road Belfast, we specialise in advising clients with complex credit histories, including those with past IVAs. We can guide you through the options available and help find a lender who may be accommodating to your situation, ensuring that you receive the most suitable advice and support.

Can I Get a Mortgage with a Default?

Having defaults on your credit report can be a significant hurdle when applying for a mortgage. Lenders view defaults as red flags indicating previous difficulties in managing debts, which raises concerns about your ability to maintain future mortgage payments. However, the circumstances of the default can influence how severely it impacts your application.

Some lenders are willing to consider the context of your default. For instance, if your default was due to a one-time oversight and happened several years ago, and you have since maintained a solid payment history, lenders might be more lenient. Demonstrating that you have recovered financially and are currently managing your finances responsibly can help mitigate the negative effects of past defaults.

At The Mortgage Clinic on Lisburn Road Belfast, we understand that everyone’s financial situation is unique. We offer specialised advice on adverse credit mortgages and can help match you with lenders who are more understanding of individuals with past defaults. Our goal is to find a mortgage solution that fits your current circumstances and enables you to move forward with buying a home.

Can I Get a Mortgage After Bankruptcy?

Securing a mortgage after declaring bankruptcy can be particularly challenging. Bankruptcy remains on your credit record for six years and is visible to lenders during this period, significantly influencing their decision-making process. Most traditional high-street banks and building societies are generally reluctant to offer mortgages to individuals with a history of bankruptcy due to the perceived higher risk of default.

However, your chances of obtaining a mortgage post-bankruptcy are not completely bleak. Factors such as a larger deposit and higher repayment rates can improve your eligibility. Specialised lenders who focus on adverse credit situations may be more willing to consider your application if you demonstrate financial stability and recovery post-bankruptcy.

At The Mortgage Clinic on Lisburn Road Belfast, we are experienced in dealing with complex credit histories and can provide tailored advice to individuals who have been through bankruptcy. Our team can help you understand your options, prepare your application effectively, and connect you with lenders who are open to considering your unique situation.

Can I Get a Mortgage with Debts?

Yes, it is possible to secure a mortgage even if you have existing debts. In the UK, many individuals manage both personal debts and a mortgage successfully. Whether it’s credit cards, student loans, car finance, or other types of debt, having financial obligations does not automatically disqualify you from obtaining a mortgage.

The key is demonstrating that you can manage your debts responsibly and still afford the additional mortgage repayments. Lenders will evaluate your debt-to-income ratio to determine how much of your monthly income is spent on debt repayments and whether you can realistically afford a mortgage on top of your existing obligations.

Can I Get a Mortgage with No Deposit?

In the current financial climate, the majority of mortgage providers in the UK require a minimum deposit of 5–10% of the property’s value. The era of no-deposit mortgages largely ended following the financial crisis of 2008, as lenders became more cautious. Today, 100% loan-to-value (LTV) mortgages are extremely rare and are only offered by a select few lenders under specific conditions.

However, there are still options available to help you manage the deposit requirement. Guarantor mortgages, for instance, allow a family member who owns their own home to use their property or savings as security for your mortgage. This arrangement can sometimes enable you to obtain a mortgage without a direct deposit from your own funds. Additionally, government schemes like the Help to Buy ISA and the Help to Buy Equity Loan can provide significant assistance in accumulating your deposit by boosting your savings or lending you a portion of the home’s purchase price.

At The Mortgage Clinic on Lisburn Road Belfast, we specialise in exploring all available options to help you secure a mortgage that fits your financial situation. Whether it’s leveraging guarantor schemes or navigating government assistance programs, our team is here to provide comprehensive advice and support.

Can The Mortgage Clinic in Belfast Help Me Get a Mortgage?

Navigating the mortgage application process can be daunting, especially with the various financial circumstances and challenges that applicants may face. Whether dealing with adverse credit, managing financial obligations, or seeking unique mortgage solutions like no-deposit options or securing a mortgage without traditional employment, it’s important to have the right guidance and support.

At The Mortgage Clinic on Lisburn Road Belfast, we are committed to providing you with expert advice tailored to your specific needs. Our team of experienced mortgage advisors understands the complexities of the mortgage market and can help you find the best path forward, regardless of your financial situation.

If you’re considering applying for a mortgage and need advice, don’t hesitate to reach out. We’re here to assist you through every step of your mortgage journey, from understanding your eligibility to finalising your application. Contact us today to learn more about how we can help you achieve your homeownership goals.

Helmut Elstner

Managing Director – Independent Mortgage Broker and Insurance Advisor

Helmut started working in financial services in early 2012 and founded The Mortgage Clinic in Belfast in early 2015. He specialises in all types of mortgages from First Time Buyer, Co-ownership, Self Build, Home Movers, Remortgages, Debt consolidation, to Buy to Let.

Three Best Rated Winner 2021
Winner Mortgage Broker of the year 2020
Top Rated Advisor 2021 on Vouchedfor