Newly Qualified Teacher Mortgage With Bad Credit

The definitive guide to getting a Newly Qualified Teacher Mortgage with Bad Credit.

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Can you get newly qualified teacher mortgages with bad credit?

The short answer is Yes. You can get Newly Qualified Teacher mortgages with bad credit. However this will depend largely on what type of bad credit you have, how long it was, what it was for and how much it was.

If you are considering trying to get a Newly Qualified Teacher Mortgage with Bad Credit or you are a trainee Teacher it’s worth speaking to your Bank or a specialist Mortgage Advisor who should be able to help you find the right lender to suit your needs. The main advantage of using a Mortgage Advisor is that they will not only find the right mortgage to suit your needs. They will also package your case correctly so that the lender understands your income and contract.

Different types of bad credit for newly qualified teacher mortgages with bad credit

There are a few different types of Bad Credit that can affect a mortgage application, we detail a few of these below.

Defaults

If you have a default and it was more than 6 months ago you may have options. With a Default the longer ago it was the better. Before you apply most Lenders also want it to be paid off. Some lenders even want your Default to have been paid off over a certain time ago, for example three of more years.

CCJs

Most lenders consider County Court Judgements very similar to Defaults. Therefore if they are smaller for things like parking tickets they can often be ignored by some lenders. The same really applies as Defaults, the older the better, and they probably want it paid off as well.

IVAs

Lenders usually don’t like Individual Voluntary Agreements. If you have had one in the last 6 years you may struggle to get a Newly Qualified Teacher mortgage with Bad credit.

Bankruptcy

Similar to an Individual Voluntary Agreement if your bankruptcy was in the last 6 years you will find it difficult to get a Newly qualified Teacher Mortgage with Bad Credit. Therefore it would be best to speak to your Bank or a specialist mortgage Advisor if you’re considering a mortgage.

Payday Loans

Most people do not realise that Payday loans are Bad Credit. However they show to a lender that you are potentially living outside of your means. Depending on how long ago you had a Payday loan you should have options for a Newly Qualified Teacher mortgage with bad credit.

Where is the best place to check my credit history for a Newly Qualified Teacher Mortgage?

If you think you have a Bad Credit history and want to find out what you have you should check your credit report. There are lots of credit referencing agencies available but we recommend Checkmyfile. This is because Checkmyfile shows you your credit report with the three arguably largest credit referencing agencies that lenders tend to use.

What Is A Bad Credit Mortgage?

Whilst there isn’t really a Bad Credit Mortgage, you do however get lenders and products designed for those with Bad Credit. Lenders all have different criteria and some will allow Bad credit after 6 years, some 6 months. Therefore this is why you hear the term Bad Credit Mortgage.

How Does Bad Credit Affect A Newly Qualified Teacher Mortgage?

When trying to get a Newly Qualified Teacher Mortgage your options are already limited. Quite often the lenders that would consider Bad Credit history won’t consider you not having been working recently, or that you are on a short term contract.

It may not stop you getting a mortgage, but it will certainly make it harder. It’s important if you are considering getting a Newly qualified Teacher Mortgage with Bad credit to speak to an advisor early to see what your options are.

Can I Get A Joint Newly Qualified Teacher Mortgage With Bad Credit?

Yes you should be able to. It depends on how bad your credit history is. If it was a few years ago and it has been paid off this should increase your chances. It may mean that you have to have a higher rate of interest with a Specialist lender rather than a rate off the high street.

How Much Deposit For A Newly Qualified Teacher Mortgage With Bad Credit?

In theory you can get a Newly qualified teacher mortgage with Bad credit with as little as 5% deposit. The truth is the more deposit you have the easier you will find it. Lenders tend to get more favourable if you have a larger deposit. Speak to your Bank or a Specialist Mortgage Advisor and they should be able to give you an idea of the options you would have with a bigger deposit.

What Is A Good Credit Score?

Lenders don’t necessarily look at your credit score the same way as a credit referencing agency will. The score is usually just there to give you an idea of how good your credit history is over the last six years. However if you are wanting to put a number on it, it will depend on which credit referencing agency you are looking at.

Experian

Experian score out of 999, and to be considered “good” you would want to have a score of over 880. This does not mean if you have a score under 880 you will be declined by any means. As we have said, lenders don’t just look at your score usually. They take a lot more into account.

Equifax

Equifax is scored out of 700. To be considered “good” with Equifax you would probably want a score of over 420. As with Experian, it doesn’t mean you’ll be declined if your score is under that necessarily. Lenders look at everything when assessing an application.

Got a question we haven’t answered? Try our main Newly Qualified Teacher page or our main Teacher page.

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