Buy to Let Mortgages with Low Credit Scores
A low credit score can arise if a person has a high proportion of unsecured debt. Whether its unpaid credit card bills, missed loan payments, unpaid store cards, mobile phone bills or utility bills. Even if all monthly payments are met, it can still result in a low credit score. This may be frowned upon by lenders. Many customers have found this when they’re looking for mortgages with low credit scores.
Low credit score mortgages are available for the buy to let market and a low credit score doesn’t necessarily stop some lenders from providing a buy to let mortgage. It doesn’t always mean a person is high risk. But if an individual has a high proportion of unsecured debt, even if all monthly payments are met, it can still result in a low credit score and may be frowned upon by lenders as many customers have found when they’re looking for mortgages with low credit scores.
Some lenders will only accept an application for a buy to let mortgage if a customer has a certain score number. This is obtained by conducting a credit search through Experian or Equifax and making a decision based on the score given by either of these sites.
Are Buy to Let Mortgages with Low Credit Scores Possible?
Yes – The good news is that a Low credit score mortgage can still be arranged. As long as you can justify the reasons for a missed payment or explain why several credit cards were applied for in close succession. A low credit score may not lead to an application being rejected. Mortgages with low credit scores can still be accepted.
Some lenders will conduct a credit search expecting a clean credit history, or with a minor adverse credit history. They don’t purely reply on the results of a computer. They use a panel of individual underwriters to access each applicant based on their individual merits. They then make an informed credit decision. This is of course advantageous to the customer as it doesn’t pigeon hole them. These lenders realise that everyone is different and things aren’t simply black and white.
Its also possible to improve your credit score before applying for a low credit score mortgage. Increasing the likelihood of an application being accepted. It is possible to review your credit score by visiting either www.experian.co.uk/creditreport or www.equifax.co.uk