Near Prime mortgages

How does your credit score affect getting a mortgage?

If you are struggling to get a mortgage it might be due to your credit score.

A credit score gives an indication of the likelihood that you will repay credit. It takes into account factors including your available credit, total debts, repayment history, number of credit searches and public records, to calculate how creditworthy you are.

A low credit score means that you may be able to borrow from fewer lenders compared to someone with a higher score, and it may be more expensive when you do. The best way to find out who will lend to you is to get in touch with an independent financial adviser, who will assess your current circumstances to see if they meet the lender’s criteria.

Currently, we don’t use credit scoring in our lending assessment for Near Prime mortgages, which can make things easier for those with less-than-perfect credit.

Am I eligible for a Near Prime mortgage?

Our range of Near Prime mortgages can help those who might find it challenging to secure a loan elsewhere, especially if this is due to a lower credit score.

Even if you have CCJs, missed payments or defaults on your record you may still be eligible for a Near Prime mortgage.

Currently, we don’t rely on credit scoring in our lending assessment for Near Prime mortgages, which can make things easier for those who have experienced these financial difficulties.

So, if your credit has suffered a setback or you’re recovering from poor credit, you may be a perfect candidate for a Near Prime mortgage.

What is less-than-perfect credit?

When you have less-than-perfect credit, it means that you have credit that is slightly below what lenders consider to be strong credit.

This might be because you previously had good credit and experienced some financial difficulty or you’re recovering from a position of bad credit. If you have missed payments, CCJs or defaults on your record, they can be part of the reason your credit is less-than-perfect.

How does less-than-perfect credit relate to a Near Prime mortgage?

Near Prime mortgages are mortgage products designed for those with less-than-perfect credit.

Generally, they sit between Prime (for those with strong credit) and Subprime mortgages, commonly known as adverse or bad credit mortgages (for those with poor credit).

It’s worth noting that your credit score can change, so if you currently have less-than-perfect credit and are suited to Near Prime products, you may find you qualify for Prime products in the future as your credit recovers.