Mortgages for People with a Bad Credit Rating and No Deposit

As a general rule people with bad credit can still be offered a mortgage but the rate will be considerably higher than those offered to customers with a good credit rating. The deposit will also be a lot more, so finding mortgages for people with bad credit and no deposit is especially difficult. You probably won't find a mortgage like that in a sense but there are a few other alternatives that might benefit your situation.

100% Mortgages

This option is for anyone who doesn't have a deposit to put down on a mortgage. A 100% mortgage is simply a mortgage without a deposit, with 100% of the value paid monthly. However, finding a 100% mortgage for people with bad credit can be extremely difficult in most cases; the provider won't have a lump sum to hold onto if you can't pay the mortgage at all, and they'll consider you a higher risk customer so they want to get the most money upfront in case you default.

Rent to Buy Schemes

You might be able to find a rent to buy scheme which is a great alternative to a mortgage. These schemes aren't always offered by banks or providers and sometimes offered by landlords, but you must be extremely careful when taking out one of these schemes, especially with a landlord and not a company. Always check the terms and conditions to see if they meet your circumstances and, if taking out the scheme with an individual, always seek a legal representative to guide you through the process.

Mortgage Brokers

Mortgages for people with bad credit and no deposit could be obtained through a specialist broker company. They're likely to have access to more lenders than anyone else and will look for anyone who might be willing to help you current situation, or provide advice for improving your credit rating. If all else fails and finding a bad credit/no deposit mortgage seems impossible, try a broker. You might have to pay additional fees but it can be worthwhile.

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