Please call an adviser on 01738 583008

Adverse Credit History

If you have missed credit payments in the past, filed for bankruptcy or had a CCJ you will also find it is harder to get a mortgage – but it’s not impossible.

New borrowers may even find they’ve been given a ‘bad’ credit rating because they have no credit history: with no record for any previous credit it’s harder for the lender to review you as a risk, before making a judgement on the viability of loaning you capital.

So, having a thin credit file, an actual default on a debt, or a long list of current creditors could all have the same practical impact – making a new lender cautious.

But, almost always, there will be lenders willing to work with you – although the terms of your mortgage offer may not be as favourable as you’d expect if you have a good credit score.

First, if there’s time on your side, it’s worth trying to improve your current credit score by paying slightly more each month to clear outstanding debts or taking out a credit card and clearing the balance each month to build up a positive credit history.

Call us today on 01738 583008 to discuss your personal circumstances and we can agree what action is best to get you a loan offer.

Difficult or unconventional properties

Lenders don’t always share your personal vision for what represents a dream home either. Perhaps that thatched roof isn’t seen by them as a positive feature.

Or perhaps you have your eye on a flat above a shop, an ex-Local Authority property that uses Pre Reinforced Concrete (PRC) (popular from the 1940s-1960s), or a building that uses non-conventional construction techniques such as single skin brickwork or timber frame property built before 1970.

Perhaps you want to offer on an A-listed manor house!

When it comes to mortgage loans, anything out of the ordinary about the construction or potential resale attraction of your dream home can give the mainstream lenders a nightmare. They want to know their capital is safe.

But with virtually every type of property, there is a lender experienced in that market. It’s just a case of knowing who best to approach. That’s where The Lending Channel, with our extensive panel of lenders, are your best ally.

Rest reassured, whether you’re a first-time buyer, or you want a mortgage to move to a dream house, the whole process isn’t as difficult as it once was – at least for those who come to The Lending Channel.

Call 01738 583008 today, and one of our advisers now to discuss your circumstances and see how we can help.

Self-employed mortgage

If you want a self-employed mortgage – a description that now applies to one in five of the UK’s working population – then there is a good chance that you too have found it hard to secure a loan offer through a High Street lender.

Don’t give up: when it comes to complex mortgage applications, The Lending Channel can help when others can’t.

That’s because, if you ask how most banks and building societies make their lending decisions the answer is ‘it’s based on proof of your monthly income’ – and that phrase is defined differently by each lender.

Through our extensive lenders panel, we can help you find the best mortgage product for your circumstances – even when you’ve been declined a mortgage offer by other lenders.

Typically, before they set up a loan offer, a lender will ask to see at least two years’ earnings from someone who is self-employed. That time constraint would be bad enough on its own… but if you’re self-employed it might be that your income each month has been a mix of salary plus an element of dividend from your business. Even if you’ve drawn out the same amount for two years, many lenders will ignore the dividend, as it’s not guaranteed.  

Contracted employment

If you currently work in a contracted position, under IR35 regulations, or if you work under the Construction Industry Scheme (CIS), then you’ll face similar problems.

Even with lenders who are familiar with the CIS Scheme, many often want to deduct expenses and tax from your quoted day rate, which will reduce the amount they are prepared to loan.

They might also impose additional requirements on you, such as asking for an increased minimum deposit.

The good news

There are numerous lenders who have woken up to the fact that employment patterns have shifted enormously in recent years. These lenders have products that will meet your circumstances. After all, there are more than 4.6 million people who are self-employed in the UK, and that number is growing year-by-year (Office for National Statistics). That’s a big potential market – and we know where to look!

The Lending Channel are members of the National Association of Commercial Finance Brokers (NACFB).
2/1 King James VI Business Centre, Friarton Road, Perth, PH2 8DY
Tel: 01738 583008 | Fax: 01738 500402

The Lending Channel are authorised and regulated by the Financial Conduct Authority.
Company number SC334818
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