As you may have seen throughout our website, we specialise in helping people who have bad credit.
A lot of the time we speak to people where there is no issue with affordability despite the adverse. That could be for any number of reasons. The adverse may be historic, it may be joint debt they were unaware of with a partner/ex partner, ill health or have recently changed jobs and had an improvement to their finances. Whatever the reason I thought it would be good to look into obtaining a mortgage with bad credit despite having a good income.
What do we look at?
This is the same for all mortgages, I tend to find its best to get the basics down first. So my first questions are usually:
- How much is the purchase price?
- How much is your deposit?
Those 2 questions help us to work out the Loan to Value (LTV). With the LTV we have a pretty good idea of what adverse cane be overcome.
Then we look at the adverse, so by that we are looking primarily at dates of registration for any defaults, CCJs, bankruptcies, IVAs, DMPs etc.
With those we can start to determine if there is a chance of obtaining a mortgage or not.
Lastly we then check income and commitments as this will help us ensure affordability will not be an issue. We tend to leave this until the end as it seems like the smaller of the issues.
Assuming we believe we can overcome the adverse at the LTV you are after and the affordability will not be a problem, we then look to get a copy of your credit report and complete a factfind just to ensure there will be no unexpected surprises.
Summary
The good news is that adverse can generally be overcome. The bad news however is that income is not really one of the factors that help to overcome it. The 2 biggest factors when it comes to overcoming adverse is age and size of deposit. The mortgage would always need to be deemed affordable by the lender and regardless of whether it is 1x income or 4x your income it would generally be treated the same in that respect. Its generally best to just get in touch, within the space of a 5-10 minute conversation we can usually confirm if we can help and expected rates and fees etc.