How to get a mortgage with bad credit history

Not everybody has a perfect credit rating. There are countless reasons why people may have a less than clean sheet: whether it's bad financial planning, illness, redundancy or simple forgetfulness, just one little money slip-up can lead to a tainted credit record.

If you are looking to buy a property and need to get a mortgage but you have a bad credit rating, you may find that many of the more traditional high street mortgage lenders and banks will refuse you. To remedy this, the first step you should take is to try and repair your credit rating as much as you can before applying for a mortgage. To do this, you will first need to obtain your credit report and check it for accuracy. If you think some of the information is erroneous, contact the credit agency and get it amended.

If your credit report is accurate, but still bad, take steps to improve it. Consolidating your loans and setting up direct debits to avoid late payments will help to improve your score. Credit raters look at how you manage your debt and make their assessment based on this information. Regular payments will improve your ratings and, though it can take several months, if you stick to your repayment schedules, your credit rating will start to improve.

If for some reason you can't improve your credit rating any further, in many cases you will still be able to find a lender that will grant you a mortgage even though you have a bad credit history. Bad credit mortgage lenders will charge a higher interest rate than for regular mortgages, but the upside is that as long as you make your repayments on time, you will be able improve your credit rating. Be careful not to bite off more than you can chew - if you can't keep up with your loan repayments, you'll make your bad credit situation even worse.

When looking for a bad credit mortgage, make sure your shop around. A simple Google search will quickly reveal that there are dozens of lenders who are willing to give advice on adverse credit mortgages and lend to those with a less than perfect credit history, so it's a good idea to compare and contrast the different deals.

Ultimately, don't be ashamed of having a bad credit history. Many people in the UK and other counties are in the same situation, but with the correct financial planning, and help from a bad credit mortgage adviser, your credit history shouldn't become a barrier to purchasing a new property.

Elisha Burberry is an online, freelance journalist and keen traveller and watersports enthusiast. Originally from Scotland, she now resides in London.