Save for a larger deposit: A larger deposit can help offset the risk associated with bad credit.Paying down debt, even if it’s just a little bit, can have a positive impact on your credit score. Pay down debt: Lenders prefer borrowers with a low debt-to-income ratio.If there are any errors, dispute them with the credit bureau and have them corrected. Check your credit report: Obtain a copy of your credit report from one of the major credit bureaus and check it for inaccuracies.If you have bad credit but a good income, there are several steps you can take to increase your chances of obtaining a mortgage: Improving your chances of getting a mortgage with bad credit The clients were thrilled with the outcome, as they had been struggling to find a lender willing to work with them prior to contacting Fox Davidson. By leveraging the couple’s high income and working with lenders who were willing to consider other factors in addition to credit score, we were able to negotiate an attractive interest rate for the couple, considering their high income and other positive financial factors. Fox Davidson presented the clients with several mortgage options, considering the interest rates, fees, and other terms within each offer.įox Davidson Mortgage Brokers were able to secure a £650,000 mortgage for their clients, despite their bad credit rating. Therefore, we focused our efforts on finding lenders who would be willing to consider other factors in addition to the clients’ credit score.Īfter conducting a thorough analysis of the couple’s financial situation, we identified several lenders who were willing to work with the clients. We also knew that the couple’s late payments on their loans would make them high-risk borrowers in the eyes of most traditional lenders. We knew that the client’s high income would be a significant factor in securing a mortgage. One of our experienced brokers at Fox Davidson was able to assess the couple’s financial circumstances and identify lenders who would be willing to offer them a mortgage. As a result, when they began the process of securing a mortgage, they encountered significant difficulty finding a lender willing to work with them.įortunately, they contacted Fox Davidson Mortgage Brokers. Despite their impressive earnings, they had experienced some late payments on their loans, resulting in a bad credit rating. Our clients were a high-earning couple with a combined income of over £200,000. We work with bad credit mortgage lenders that specialise in helping clients with good incomes and we secure bad credit mortgages from £150,000, with no upward limit.Ĭase Study: How Fox Davidson Mortgage Brokers Secured a £650,000 mortgage for a client with bad credit but a good income Our job is to present a good case for the lender to lend, and we will work with you to ensure that the application is made in the best possible way and to the correct lender. Lenders that we work with can manually assess an application rather than using an automated credit scoring system. The terms of the mortgage will depend on the severity of the bad credit and also how recently the bad credit happened.Ī client with a good income of £50,000 or more may still be able to secure approximately 5 times their annual salary. Mortgage lenders will lend to clients who have bad credit and a good income.
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