Stipend Mortgages with Bad Credit
Stipend Mortgages with Bad Credit
As with all mortgage applications, you are more likely to be accepted the better the credit that you have. If you do have bad credit it is still possible to be accepted using stipend as income, even with just a 5% deposit.
You can read more about required deposit sized for stipend mortgages here.
Last updated: 5th February 2022
Can you get a stipend mortgage with bad credit?
Yes, it can be possible.
An agreement in principle allows the bank to check out your credit history and give an indication as to if they are likely to lend to you. I used stipend friendly lenders that perform a soft search on your credit profile which does not affect your credit score.
Whether you get accepted or not, and what deposit size is required, will come down to your overall credit profile and exactly what you are applying for. It is impossible to say if you will qualify without approaching a lender for an agreement in principle.
Below are some examples of bad credit situations that the best bad credit stipend lender can consider.
Arrears and stipend mortgages
Arrears are late payments on money that you have borrowed. This could be on a personal loan, mortgage payments, or credit card debt that was due.
You can still be considered if you have arrears of up to 2 months in the last 2 years. It’s not impossible if you’ve had late payments last longer than this, especially if you have a large deposit, but you’re less likely to be accepted.
CCJs and stipend mortgages
CCJ stands for County Court Judgement. This is a decision by a court that has formally decided that you owe money to the claimant.
You can still be considered for a stipend mortgage if you have had CCJs so long as:
- The CCJs were registered over 3 years ago (even if they are not satisfied now)
- A satisfied or unsatisfied CCJ in the last 3 years so long as the total value is not greater than £500
In theory you may still qualify even if you don’t meet the above but it is unlikely.
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IVAs and stipend mortgages
IVA stands for Individual Voluntary Agreement. This is an arrangement with creditors to repay your debts made via an insolvency practitioner.
You may still qualify for a stipend mortgage so long as you have not bee subject to an IVA within the last 3 years.
Please be aware that by clicking onto the above link you are leaving the Jamie Thompson Mortgages website. Please note that neither Jamie Thompson Mortgages nor PRIMIS are responsible for the accuracy of the information contained within the linked site accessible from this page
Bankruptcy and stipend mortgages
In theory a discharged bankrupt may be able to get a stipend mortgage after being discharged for 3 years.
Repossession and stipend mortgages
If you’ve had a property repossessed it may be possible to get a stipend mortgage so long as the repossession was not within the last 6 years.
Your home may be repossessed if you do not keep up repayments on your mortgage
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