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If you are looking to make changes to your Mortgage, but you have experienced credit problems in the past or are still currently experiencing credit problems then you might want to find out how they will affect your application. The only definitive way to find out is to speak to your lender and make them aware of your situation. Your lender will then be able to give you a guide as to whether they would consider this particular issue to be a problem.
You must take into account that every lender is different and what one will accept another may not. To find out what your lender considers to be okay speak to them. Regardless of what is stated below we cannot speak on behalf of any Mortgage lender
This article is merely considered to be a very broad idea of the kinds of credit problems lenders will and will not tolerate so if this is what you want then look no further...
Bankruptcy
Some Mortgage lenders have recently changed their underwriting criteria, so although they may have accepted someone who has been bankrupt in the past, they may not allow them to do any further borrowing or to port their Mortgage to a new property since they made changes to their criteria
Missed Mortgage Payments and Arrears
Many lenders will not even consider allowing you to do any form of application if you are in arrears with them. If you are in arrears or you have missed payments in the past then you may need to get your payments up to date and show good account conduct for a specific length of time before they will even consider you. For example, some lenders may say that you need to have an up to date mortgage and then not apply for a further six months to give you time to show that you can keep up with your payments
Late Mortgage Payments
Let’s be clear, a late Mortgage payment will not help matters, but depending on the exact circumstances of this late payment and also how quickly you rectified the error, some Mortgage lenders may be prepared to allow you to remortgage any way.
IVAs
If you have entered into an IVA in the past or you are in an IVA currently then it can be seen by lenders to be a sure sign that you are in or have been in financial difficulty. This will cause the lender some cause for concern and in some cases results in remortgage applications being declined
Late Credit Card Payments
Any kind of late payment to a creditor will not be seen as great, but once again late payments on a credit card won’t necessarily lead to a decline from your Mortgage lender. Once again it will depend upon the frequency with which your payments have been late and how quickly you rectified the issue.
Remember to find out what your lender’s response will be contact them.Find an Independent Financial adviser
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