Bad Credit Mortgage - Top Tips on getting a bad credit mortgage

If you are thinking of applying for a bad credit mortgage because you've been turned down by other mortgage lenders, you will want to make sure that this time your application is a success. So how can you improve your chances?

• Credit rating

If you have had problems with debt, or missed payments for loans or mortgages in the past you will have a poor credit rating. It's because of this that you were turned down for your initial mortgage application. You can access your credit records through Experian and Equifax - two credit record agencies - and use this information to know your credit rating, so you can start to improve on it in the long term. If you have been regularly paying bills, loans and other debits for a number of years, your credit rating may have improved. The kinds of bad credit mortgage you can get may depend on this credit rating and the better it is, the better interest rates you can get.

• Manage your debt

If you are in debt it can often be simply bad management. Get control of your finances so that you can prove you can meet a monthly mortgage repayment - this will put you in a more favourable light when it comes to successfully getting a bad credit mortgage. It's simple but making a list of your essential outgoings such as bills, loan repayments and food will help you see where you could make savings. Do you really need a gym membership or magazine subscription? Could you shop more cheaply at a different supermarket? Go through your bank statements and see where your weaknesses are - splurges on a Saturday night? Impulse shopping? Start cutting back and prove that you have the income and financial responsibility to take on a bad credit mortgage.

• Stop getting easy credit

If you have credit and store cards, don't get any more and try and stop using them altogether - they can be an expensive way of managing money, encouraging you to spend more and you will pay extra interest if you are unable to meet your monthly repayments. Lenders of bad credit mortgages like to see that you are concentrating on paying off debt rather than getting deeper into debt.

Homebank have qualified mortgage consultants ready to advise you with your mortgage and insurance needs. For informative and insightful bad credit mortgage advice, call us to arrange a no obligation appointment to suit you. Homebank are the 'people's mortgage broker' with over 2900 mortgage products to choose from, including products that are not readily available on the High Street. Homebank's experienced consultants could find the ideal product for you - call Homebank now on free phone 0800 052 3604.