Finding a mortgage with bad credit can be difficult and has to be approached carefully. Due to the shortage of lenders available in this market, getting the application right first time is very important. Having the experience of a specialist adverse credit mortgage broker will greatly enhance your chances of success.

I’ve helped many people with poor credit to find a mortgage. For a free no obligation chat, get in touch today

Steven Neale – Specialist Bad Credit Mortgage Broker

rita gulatirita gulati
20:13 22 Nov 21
SN mortgages have been very helpful in that they managed to get a mortgage for us which no other company could help with. Our case was held in a very professional manner and we would recommend the company to everyone.
Dave ButtonDave Button
16:46 13 Apr 21
absolutely amazing service from Steve, after being turned by by other lenders, he managed to get the mortgage i required to pay off all my outstanding debts along with a better deal than my previous mortgage.would recommend to anyone. Thank you.
lee Cathcartlee Cathcart
11:05 25 Jan 21
During very difficult COVID times, Steven and Sue were always just a phone call away to answer all our questions and concerns. Their knowledge found us a great mortgage. Their personal touch really is the difference. Cannot recommend highly enough.
Alice GraddonAlice Graddon
10:19 21 Jan 21
I am absolutely thrilled at the service I have received. After failing to get a mortgage through standard lenders, I had given up hope on being able to move so I am very happy to have found Steve and Sue. They were helpful and extremely supportive, especially given our very tight timeline, and were able to find a mortgage that suited me. I would absolutely recommend them!
Richard HoweRichard Howe
12:31 20 Jan 21
Our second mortgage arranged by Steve & Sue - Outstanding Service, excellent level of support complimented by excellent communications. We have every confidence in both Steve & Sue supporting us through the mortgage maze. On both occasions the process has been seamless - We can highly recommend the services of this amazing company - where customers come first.

Can I Get a First Home Fund Mortgage with Bad Credit?

Getting a First Home Fund mortgage with bad credit from a high street lender is almost impossible. However, I know of one lender who can provide First Home Fund mortgages to those with poor credit, depending on the severity of the credit issues and how long ago they came about.

For example, if you have a default or CCJ registered on your credit file within the last few months, you are unlikely to be accepted. However, if your bad credit issues were from more than 6 – 12 months ago, I can almost certainly help.

It’s also possible I could help you get a First Home Fund mortgage if you have more serious credit issues, such as an IVA, DMP or even if you’ve been bankrupt. The key factor is how long ago these credit issues occurred and how they were rectified. 

You may have even had your home repossessed and think it’s impossible to get a mortgage. I’ve helped many clients in similar circumstances to find a mortgage and get back on the property ladder.

Bad Credit Mortgages for Scotland

Before applying for a First Home mortgage, it’s important that you check your credit file to understand whether you have any issues, such as missed payments, defaults or CCJ’s for example. You could look at one of the free reports from Equifax’s ‘Clearscore’ or TransUnion’s ‘Credit Karma’ or use Check My File for free for 30 days and then £14.99 a month – you can cancel online anytime – which checks all three.

When it comes to getting a mortgage with bad credit, the biggest hurdle for most buyers is the deposit. Having a poor credit history usually means you will need a larger deposit, which is often around 25%. 

The First Home Fund scheme in Scotland is a great option for those with bad credit, as it can provide up to £25,000 towards the cost of your mortgage and therefore reduce the amount of deposit required.

What is the First Home Fund scheme?

First Home Fund is a Scottish Government scheme which aims to help first-time buyers get on the property ladder. The scheme offers first-time buyers up to £25,000 towards the cost of a new build or existing property.

How does the First Home Fund scheme work?

The First Home Fund is a shared equity scheme. It works by splitting the cost of purchasing the property with the Scottish Government. The first-time buyer provides their own share through a deposit and mortgage, with the Scottish Government offering the remaining share, up to £25,000.

For example, let’s say the property you wish to buy is worth £150,000 and you want to put down a 10% deposit. The Scottish Government can provide £25,000, which means you have to provide a mortgage and deposit for only £125,000. With a 10% deposit (£12,500), you would require a mortgage of £112,500.

When it comes to selling the property, you would have to pay back the £25,000 to the Scottish Government. An alternative option is to pay the £25,000 back earlier buy increasing your equity share of the property.

Who can get a First Home Fund mortgage?

The First Home Fund scheme is available to all first-time buyers in Scotland, whether applying as a single applicant or jointly. Some requirements include:

  • The scheme is only available to first-time buyers in Scotland
  • The scheme can be used to purchase both new build and existing properties
  • The mortgage must be for at least 25% of the property value
  • The mortgage must be a repayment mortgage (not interest only)
  • The property can not be used as a buy-to-let
  • The maximum contribution is £25,000 or 49% of the property value (whichever is lower)

Why you should use a broker for a First Home Fund mortgage with bad credit

If you want to apply for a mortgage and have bad credit, the majority of standard lenders are unlikely to consider you. This leaves a small group of adverse credit lenders available, each with their own specific lending criteria.

As a specialised bad credit mortgage broker, I have a complete understanding of lending criteria for bad credit mortgage providers. I can review your credit file to understand your specific circumstances and match you with a lender who is likely to accept your application.

For more information on First Home Fund mortgages with bad credit, please call me 01494 526400 or complete my online enquiry form.

3 REASONS TO ASK ME TO ARRANGE YOUR MORTGAGE

Years of Experience

I specialise in Bad Credit Mortgages for people who have a poor credit history because of any number of reasons.

Choice of Lenders

I am a Whole of Market, Mortgage Broker meaning I can talk to every lender to see about finding you the right mortgage.

Saving You Money

As a specialist Mortgage Broker for over 30 years I have a great deal of experience that will help save you time & money.