Mortgage Arrears

It is estimated that up to 20% of the working population in the U.K. would fail to pass a High Street Lenders credit score. In general, the main two key issue's that create difficulty are if the applicant has had recent mortgage arrears (within the past 2 years) or received a County Court Judgement or Default from a finance company.

You may be turned down for a mortgage if you have fallen behind with your payments on a previous loan. Lenders conduct a credit search to discover your credit history, and often use a system of credit scoring to assess your creditworthiness. If you don't get enough points you could be refused a loan, and will obviously affect your score.

Many Lenders will lend to people with a history of mortgage arrears, but only under certain conditions. They may limit the proportion of the property value they are prepared to lend, and specify a maximum number of months' arrears, typically one or six months. They may also decline to consider your application if the arrears occurred within a specified time period, for example, within the last 12 months.

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