Ove the years we have built up plenty of Mortgage Success Stories. Typically the bad credit in these examples come down to either youth, a life event or illness. As we are now coming out of the worst of covid and its impact on the economy I thought it might be worth making a post on adverse due to covid after a couple of recent enquiries we have had.
Bad credit because of covid
There are 2 elements to this, but they will both be looked at in the same way.
The first element will be for people who have caught covid and were ill with it or still are. You may have had to stop working for a period or change your role and that in turn this can affect your income.
The other part to covid causing credit problems is due to your work. You may have been made redundant or you could be self employed and your income was or is lower than pre covid levels. This can literally effect anyone. If you worked for an airline, you were probably out of work or working a lot less. If you were a tradesman, there is a good chance you spent a period of time being unable to work. This would likely have had a knock on effect to your accounts.
Both of these can cause a drop in income. That in turn can have an effect on your ability to pay bills which can then result in missed or late payments. Even with the agreement by lenders to allow payment holidays.
Can I get a Mortgage?
If your adverse was brought about because of covid, we can still look to help you overcome this in order to get a mortgage. At the time of writing this article covid and the bad credit that came with it is probably still quite recent. That will likely mean higher interest rates. Although the devil is very much in the detail so it is not a given.
The good news however is that Covid being the reason for any adverse in itself would not prevent you from getting a mortgage. We have helped other people overcome adverse caused by the Covid-19 pandemic. If there is an answer out there, we can probably help.
This would be treated in exactly the same way as we would bad credit caused for any other reason. We look at the case on its merits and try to be realistic in the options available.
If you would like to call us to discuss, we will give you an idea of options, rates, deposits etc please get in touch. You can decide if you wish to move forward or put it on hold for a little while.