How Can I Buy a House with Bad Credit and No Deposit?
Two of the biggest items lenders look at when assessing your home loan application are your credit score and the size of your deposit. Having a good credit score and close to a 20% deposit can improve your chances of being approved for a home loan. But what about if you have bad credit and no deposit? Can you still be approved?
If you apply with the lending specialists at Mortgage House, the answer is yes. We understand that your financial situation may not always be ideal, but that shouldn’t disqualify you from being able to buy a home. While the only way to receive a home loan with no deposit is by securing a guarantor, we do offer a variety of bad credit home loan products.
Basics of Bad Credit Home Loans
Bad credit home loans usually have higher interest rates. Banks and lenders like to be able to reduce the amount of risk associated with each loan, and bad credit home loans have a higher risk. To help offset this risk, they often come with higher interest rates.
The size of your deposit does impact your application. If you cannot afford to save for any size deposit, securing a guarantor or applying for a family pledge loan can help improve your application and increase your chances of approval.
Applications for bad credit home loans are usually more involved. This is where working with one of our lending specialists is important. We will help you fill out and strengthen your application. We want to get a complete picture of your financial history so we can find the best home loan for you.