Mortgage lenders will lend to clients who have bad credit and a good income. The terms of the mortgage will depend on the severity of the bad credit and also how recently the bad credit happened.

A client with a good income of £50,000 or more may still be able to secure approximately 5 times their annual salary. 

Lenders that we work with can manually assess an application rather than using an automated credit scoring system. Our job is to present a good case for the lender to lend, and we will work with you to ensure that the application is made in the best possible way and to the correct lender. 

We work with bad credit mortgage lenders that specialise in helping clients with good incomes and we secure bad credit mortgages from £150,000, with no upward limit.

Case Study: How Fox Davidson Mortgage Brokers Secured a £650,000 mortgage for a client with bad credit but a good income

Our clients were a high-earning couple with a combined income of over £200,000. Despite their impressive earnings, they had experienced some late payments on their loans, resulting in a bad credit rating. As a result, when they began the process of securing a mortgage, they encountered significant difficulty finding a lender willing to work with them.

Fortunately, they contacted Fox Davidson Mortgage Brokers. One of our experienced brokers at Fox Davidson was able to assess the couple’s financial circumstances and identify lenders who would be willing to offer them a mortgage.

We knew that the client’s high income would be a significant factor in securing a mortgage. We also knew that the couple’s late payments on their loans would make them high-risk borrowers in the eyes of most traditional lenders. Therefore, we focused our efforts on finding lenders who would be willing to consider other factors in addition to the clients’ credit score.

After conducting a thorough analysis of the couple’s financial situation, we identified several lenders who were willing to work with the clients. Fox Davidson presented the clients with several mortgage options, considering the interest rates, fees, and other terms within each offer.

Fox Davidson Mortgage Brokers were able to secure a £650,000 mortgage for their clients, despite their bad credit rating. By leveraging the couple’s high income and working with lenders who were willing to consider other factors in addition to credit score, we were able to negotiate an attractive interest rate for the couple, considering their high income and other positive financial factors. The clients were thrilled with the outcome, as they had been struggling to find a lender willing to work with them prior to contacting Fox Davidson.

Improving your chances of getting a mortgage with bad credit

If you have bad credit but a good income, there are several steps you can take to increase your chances of obtaining a mortgage: 

• Check your credit report: Obtain a copy of your credit report from one of the major credit bureaus and check it for inaccuracies. If there are any errors, dispute them with the credit bureau and have them corrected.
• Pay down debt: Lenders prefer borrowers with a low debt-to-income ratio. Paying down debt, even if it’s just a little bit, can have a positive impact on your credit score.
• Save for a larger deposit: A larger deposit can help offset the risk associated with bad credit. It also reduces the amount you need to borrow, which can make you a more attractive borrower to lenders.
• Consider a guarantor: If you have a family member or friend with good credit, they may be willing to act as a guarantor for your mortgage. This means that if you default on your mortgage payments, they will be responsible for paying them.
• Work with a specialist broker: A bad credit mortgage broker can help you find lenders who are more likely to approve your application. These lenders understand that individuals with bad credit can still have a good income, and are willing to consider other factors when making their lending decisions.
• Be prepared to pay a higher interest rate: Lenders may charge higher interest rates to offset the risk of lending to borrowers with bad credit. Be prepared for this and shop around for the best deal you can find.

In summary, if you have bad credit but a good income, there are still options available for obtaining a mortgage. By taking steps to improve your credit, saving for a larger deposit, working with a specialist broker, and being prepared to pay a higher interest rate, you can increase your chances of mortgage approval.

To discuss your mortgage requirements with one of our team please do get in touch.