Having a bad credit rating can be something of a burden. If you have a less than enviable record with money, it can stop you from getting a mortgage or obtaining further credit. In a world where house ownership is imperative, it can be difficult to know where to turn.

But, you can secure a mortgage even if you have a bad credit rating. While it may difficult initially, there are some brilliant things that you can do if you have the perfect house.

Let’s find out more.


Take a Look at Your Credit Score

Okay, so your credit score may not be in the best possible state. But, there are ways that you can improve this. Make sure that you are in the know when it comes to your credit rating. Get a fully rounded report to see where you have gone wrong. If there are mistakes, make sure that these are corrected immediately. You also need to make sure that you have corrected any issues that are on your report.

You should also make sure that you are up to date when it comes to missed payments. While this can take its time to correct, it’s important that you make sure that you improve your credit report. Make sure that your bills are on time, and you avoid any CCJs. Deal with all of your financial incidents as they occur. This is an excellent way to get your credit score ship-shape. This will stand you good stead when it comes to securing a mortgage. Bad credit doesn’t mean the end of the road. Start taking corrective action now.

The Low Income Problem

While your income may be low, it’s not the end of the world. You can obtain that 1 bedroom town house flat in South Petherton should you take the helm of your finances. You need to make sure that you are managing your money in a robust way. You should make sure that you live within your means and avoid further credit. If you cannot afford further credit, avoid it like the plague. After all, you need to secure a mortgage. The best way to do this is to make sure that you are not borrowing more than you can afford. Make sure that your budget and financial expenditure is in good order.

You can also check out the Help to Buy Scheme that is available for low earners. Even if you have bad credit, these are a viable option for many.

The Small Deposit Conundrum

A small deposit and an adverse credit rating can seem like the end of the world when it comes to securing a mortgage. But, there are some steps that you can take. Make sure that you have paid all of your current debts. Take the money from your deposit if need be. Having a clear bill of financial health is vital. So, while you may not want to dip into your deposit, it is fundamental that you clear your current debt. A small deposit doesn’t necessarily mean rejection. But, a lot of outstanding debts will.