As you can probably tell from our website, we tend to specialise in the bad credit part of the market so if you think you are in the need of a home loan via Bad Credit Mortgage Lenders, we are the specialist bad credit broker that can help.
The bad credit mortgage market has changed a lot since we started out in 2013, some lenders have come to market, others have left.
The aim of this post is to go over some of the Bad Credit mortgage lenders who are actively lending in 2019 and 2020.
However, having bad credit does not necessarily mean you will end up with a bad credit lender. Around a third of our customers with adverse and bad credit in 2018 ended up with normal lenders. The aim of this post however is to look at just the lenders who do specialise in bad credit Mortgages and give some feedback and examples of our first hand experience with them.
If you have read reviews online about some of these lenders it is probably not surprising that you may be concerned about using them. There are a few key things to remember however:
- People tend to only leave negative reviews online. Very few people will go online to leave positive reviews unless asked. Particularly when they are discussing adverse credit issues.
- The types of applicants who go to these lenders are typically people who have complex situations. So it is not surprising that the underwriters of adverse credit mortgage lenders are a little more cautious when it comes to underwriting.
- These types of cases are quite specialised and sometimes it can be the brokers fault for not being experienced enough with these types of lenders.
The 3 things combined can mean that a bad credit mortgage application process can be traumatic.
What we try to do is to set peoples expectations from the outset. Realistically it is not going to take less than 2 weeks to receive an offer like it usually would with a normal high street lender. They are going to ask more questions and want more paperwork.
Bad Credit Mortgage lenders in 2019
So lets go through these lenders then, by clicking their names we have done a post on an example case with them.
Pepper Money – We use Pepper Money quite a lot and were one of the first brokers to use them. We have a 100% record of application to Mortgage Offers (at the time of writing) with them and are very big fans of where they are. As a bad credit lender, they are good with Defaults and CCJs, not so good with Insolvency. They also have a specialist range of products for people who have been in or are currently in Debt Management Plans.
Bluestone Mortgages – Again, another lender we were one of the first Mortgage Brokers to use. We have seen them come a long way over the year or 2 they have been trading in the UK Mortgage market and have really cornered their part of the market. They tend to go after the more adverse part of the market than Pepper do and are also very good with Insolvencies. We also have access to products and Criteria that not all brokers have access to. Another lender we have a 100% record with at time of writing.
The Mortgage Lender – A similar lender to Pepper Money. They are geared more towards the Default & CCJ part of the market. TML tend to have limits on the number of Defaults & CCJs on certain products where as Pepper are more interested in the ages. Rates tend to be in line with Pepper.
Kensington Mortgages – Kensington have been around for a long time on and off. They re-launched in 2010 and were one of the first bad credit lenders to come to market following the recession in 2007. Their products are quite competitive but we tend to find their underwriting quite “thorough” to put it politely, so there has to be some discussion around rates over underwriting.
Precise Mortgages – Again another lender who launched in 2010 in the bad credit market. Precise have some very competitive products and have products that range from very minor adverse up to some major adverse.
Vida Homeloans – Vida are probably the newest kids on the block. They came to market with such a wide and varied product offering it was almost too good to be true. I think it is safe to say when they launched they were a little busier than they probably expected. They have offerings for mild to more serious adverse. They are good with things like DMPs and Bankruptcy as well as Defaults so again, quite varied.
There are other Bad Credit Mortgage lenders out there, it would be difficult to cover them all as there are some we have not used due to there being better alternatives or due to hearing some negative things through the grapevine. Ultimately any recommendation we make is a reflection on us and so we only recommend lenders we are happy will not reflect badly on us.