Five Pieces Of Advice For First-Time Buyers With Poor Credit

Venturing into the big wide and scary world of owning your own property can seem like a lightyear away for many young people, students and apprentices. The initial step onto the market, therefore, will seem close to impossible with all the furore around credit ratings, rising property prices and the assumed difficulty of getting a mortgage. However, it doesn’t need to be completely out of reach, even if you have bad credit.

There is a lot to learn, so strap in and get ready to understand how you can increase your chances of owning your first property no matter if you are struggling with a bad credit rating. Here are five pieces of advice for you to consider as you make your way through this important stage:

  1. Get your facts straight: There is no reason to worry or be concerned about your bad credit -we will get on to that bit in points two, three, four and five – but you must make sure you are approaching mortgage lenders with the information they require. As a first-time buyer there are three big credit references that you will be directed to: CallCredit, Equifax and Experian. These are chosen by different lenders, who choose to take the word of one of those references, meaning that you need to have a record of your credit rating with each for the specific lender you speak with.
  2. Adverse lenders are waiting to help you: Scare stories have been running since the late 2000s about the lack of adverse lenders (mortgage lenders who work with bad credit) since the ‘credit crunch’. This is mostly nonsense and you will be able to find one for your needs in no time at all. The only task is discovering a mortgage lender who can offer you the most-appropriate and comfortable deal.
  3. Shop around for the best deal: Your status as a first-time buyer will be like taking candy from a baby if you let lenders make a mockery of you. Too many individuals pick the first lender they see because they just want to get it organised quickly. Shopping around can save you a lot of money and help you to understand where your money is going each month.
  4. Discover the help available to you: Government schemes are never too far away in the UK and they can provide support for those with bad credit and first-time buyers. While you may not find a specific first-time-buyer-with-bad-credit scheme, you will be put in contact with something that can aid your venture into the market.
  5. Start improving your credit score today: Once you have discovered you have poor credit and how it has manifested itself, you can start immediately to try and improve it. Give yourself the best chance of improving that score by: paying down credit cards, keeping your balances low and making sure that you have set reminders for the upcoming payments in your calendar. This will help to enhance your credit rating before you make any moves with lenders.

Those are just five pieces of advice that can help you as you make your way into the great unknown. While it may seem like a scary place, our team at MacFarlaine & Brooks can provide you with the advice and guidance that you need to feel comfortable, whatever avenue you take.

Speak with our helpful experts today to discover more.


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