In this blog, we will discuss getting a bad credit mortgage in Scotland and how you can ensure you present your best mortgage self if you have bad credit and want to get a mortgage in Scotland.
bad credit mortgages are handled slightly differently in Scotland than they are in England so if you have moved over from England recently you may be approaching getting a bad credit mortgage in Scotland the wrong way.
Bad credit mortgages in Scotland
Bad credit in Scotland could be referring to:
What can you do for bad credit mortgages in Scotland?
Get on the electoral roll
Reduce your credit utilization to less than 30%
Avoid missing repayments
Avoid payday loans
Avoid closing your credit accounts
Avoiding using too much credit
Open a bank account
Avoid late credit account repayments
Get a credit builder card or loan
Avoid too many credit applications at the same time
Check your credit report for errors
Checkmyfile will show you your credit report from the four credit bureaus.
If you spot any errors on your credit file you can then take these errors and report them to the credit bureau.
How to get a mortgage with bad credit in Scotland?
Getting a bad credit mortgage in Scotland isn't necessarily harder but is somewhat different.
Due to how property prices in some parts of Scotland are much lower, you will tend to find that a lot of buyers with bad credit apply for mortgages in Scotland in order to get their hands on those properties which they simply won’t be able to find at that price range in the Uk.
Some Scottish mortgage lenders may view rural properties as a riskier investment as their location can make them more difficult to resell.
Buying a property in the rural areas of Scotland where property prices are much lower may be harder and even further compounded for those borrowers who try to get mortgages with bad credit in Scotland.
Can I get a bad credit mortgage in Scotland?
You will be able to find bad credit mortgage lenders in Scotland for both the rural and urban areas but whether a bad credit mortgage lender in Scotland will offer you a mortgage or not will depend heavily on your personal circumstances.
If the bad credit you had has been a few years since the event occurred then you may find more bad credit Scottish mortgage lenders are willing to lend to you.
Some bad credit Scottish lenders will even use the size and type of credit account your bad credit occurred with to decide if you meet their eligibility requirements.
Different bad credit mortgage lenders in Scotland will have different eligibility criteria with they work with. A bad credit mortgage broker with some experience of the Scottish mortgage lenders may be willing to help you get a bad credit mortgage in Scotland.
Buying in Scotland vs England
When you buy in Scotland you won’t pay stamp duty but may have to pay the land and transaction building tax. In a case where you have no tax due you may be able to use these funds towards the mortgage deposit for your bad credit mortgage in Scotland.
The costs of buying a home are somewhat lower in Scotland than in England as the associated costs of buying a home is much lower. E.g in Scotland the surveyor's report on the property is paid for by the seller and the seller must use an accredited surveyor to carry out the survey.
How to get a bad credit mortgage in Scotland
If you are looking to get a bad credit mortgage in Scotland then a bad credit mortgage broker may be able to help you.
bad credit mortgages are a specialist part of the mortgage market and great care needs to be taken when putting a bad credit mortgage application in Scotland.
A bad credit mortgage broker in Scotland will research all the lenders that may be willing to lend to you and make recommendations on what your best possible mortgage lending options are.