3 Major Facts Behind The Fiction Of Guaranteed Bad Credit Mortgages

With quite an enchanting and attractive image, guaranteed bad credit mortgages in the UK always become the magnet for the borrowers from mortgage brokers like Shinemortgages.co.uk. They are still on demand because they look like the last-minute saviours for those who ever get denials. Yes, the bad credit score people.

A mortgage is a big size loan, and for a person with poor credit score performance, it already sounds unachievable.

What makes the property market offer a guaranteed approval thing on the bad credit mortgage? It is essential to know how things work.

1.     No lender has the rights to offer a guaranteed approval

Few things are for only promotional purposes to catch the attention of the borrowers. Let us all confront reality. The lending market is restricted in many rules made by the regulatory authorities. Technically and ethically, no lender can ever offer guaranteed approval. Especially when it is about the applicants with imperfect payment records, circumstances are stressful. If a mortgage company commits to you to provide assured funds, then please do get familiar with the reality.

2.     An applicant can only try to prove best possible repay capacity

Yes, this is what happens in actuality. An applicant, whether with a good credit score or bad credit score, needs to prove to repay capacity. Procedures always work in the decided manner.

·         Bank statements

·         Salary slip

·         Job stability proof (last two years at least)

·         Recent financial behaviour (of last 6 months)

There is no escape to the set process and the words like ‘guaranteed’ ‘assured’ have no existence in front of ethical lending.

3.     In place of relying on a fake promise, make workable efforts

Forget about all the glittery promotional lines that show you the mirage with surety of funds. Dreams from open eyes always meet their ultimate destiny of destruction.

Here are the practical ways to follow when you apply for the funds and improve chances of approval.

·  Improve credit rating before you make the mortgage application

The best way to safely play during bad credit situation is to bring a good change in your current situation.

ü  Make timely debt payments

ü  Do not take any new loan/credit card

ü  Do not pay only the minimum due of credit cards, pay the full instalment

ü  Never check your credit score with a loan amount to check the eligibility, it hurts the rating

· Find a broker that can bring you the best suitable deals

It can be difficult for you as a low credit score person to find the mortgage providers. The one that is not reluctant towards your application is not easy to detect. Broking companies know the industry in totality. They have a large panel of lenders, and their contacts in the market are always beneficial.

· Add an additional income to improve repayment capacity

The anxiety of lenders is still on the part of your efficiency to bear a loan. If you manage to arrange any additional income source, it can help a lot. More substantial grounds facilitate smoother approval. Rental income, freelance or part-time work, anything can be beneficial if it adds a considerable amount of Pounds.

The only conclusion can be

You should NEVER believe in exaggerations when it comes to financial decisions. One mistake can cause further loss to your credit rating. Applying at the wrong time, to the wrong lender can leave an adverse impact with unnecessary search footprint on your records.

Stay practical, and you can find a better solution despite the stressful condition of low credit score.