A Know-How To Mortgage With Bad Credit But Good Income

Good income is always a strong factor, and it can calm down all the issues that may cross your way while applying for a mortgage. Bad credit situation is one of the most dominating problems that cause rejection of mortgage applications.

The question can also be like how one can obtain a mortgage with good income but bad credit. For the answer, we need to go through every necessary detail that makes this condition possible.

Keep The Employment Stability Proof Ready

Having a good income is a significant factor, but that should necessarily be accompanied by stability proof of income. Maybe your income is good, but if it is your third job in the last one year, oops, the lender may raise many questions.

A person who earns well but not stays for long in any company is always considered a risky case by the finance companies. The prime focus of the mortgage providers is on the repayment capacity. For that, one needs to be in some employment. But that too, with stability in his career as that is necessary to prove creditworthiness. What if he loses his job tomorrow?

The prominent figure for income is helpful to get accepted for a loan only if you are employed and working in a company since long. It is always advisable to not to change your employer at least one year before you apply for any property loan. For a bad credit scorer, it is best if he is working at the same place for two years.

Income-Outgoing Ratio Balance Is Vital– Expenses Should Not Cross 40% Of Salary

A bulky salary becomes less effective if the expenses dominate it. There should always be a balance of what you bring home as money or earning and what goes out in the name of costs.

Understand through an example –

Mr. ‘A’ has a decent income of £25000

BUT expenses of Mr. ‘A’ consume £15000 which is 60% of salary.

In this case, despite a good income, the lender can reject the mortgage application, as a big part of the salary goes in absorbed. Expenses can be for anything from electricity bill to loan instalments.

The idol way to play safe is to not to go beyond 40% in expenditure. Do whatever you can tailor the monthly budget; cut unnecessary expenses, and everything that can help to keep the balance.

Work Precisely On The Cause Of Poor Credit Rating Before You Apply

You may not be able to turn your credit rating from wrong to the right in a short time, but some improvement can surely be earned. Just as there are reasons for degrading in credit score performance, there are also ways of gaining a boost in it. For that, it is necessary first to know the cause of the fall in rating in your case.

Here are some of the most common grounds on which poor payment history survives –

  • Late payments

  • Missed payments

  • Taking the wrong credit card (that you cannot manage in instalments)

  • Multiple loans or credit card applications

  • Identity theft

  • Having no credit history etc.

You may add your causes that are applicable in your case. Whatever is the reason, work on it and get some positive impressions in your credit records.

You may have taken a wrong credit card that has interest rates and instalments unbearable for your repaying capacity. In such conditions, closing it is the better option. But do not close the card before you use the available balance as it leaves a negative impact.

You May Need A Bigger Deposit If Poor Credit Situation Is From The Last Six Months

Long poor credit history may dominate the aspect of good income. The loan provider can ask you to give a more substantial amount of deposit. The minimum is 5%, but in the case of and chaos, you may need to extend it to 7% to 8%. It helps to avoid the fear of denial because rejection can make the situation severe. The search footprint and the impression of the decline of the mortgage application can be frightening for anyone. Why play with the circumstances? Make the necessary arrangements beforehand.

There is no doubt that the down payment can work as the game-changer just as the income influence. However, even if the low credit rating is not much old, you should try to arrange a more substantial deposit if possible. Always remember, the more prominent part of the cost of the property you cover, smoother becomes the borrowing experience.

Find A Broker To Bring An Appropriate Deal

It can be a difficult thing to find a lender that can provide you with a mortgage with bad credit. Yes, the substantial financial capacity factor is also there, but some lenders are always reluctant towards the payment history issues. In that case, it is a time waste.

Brokers can find the most relatable options in a short while. They are the experts of mortgage and also have a deep understanding of the trends of the industry. They know which mortgage company provides affordable deals to bad credit scorers. Their knowledge of the overall scenario enriches you with all the necessary information.


Impossible situations become easy to handle with one decisive factor. The aspect of a big salary is so strong that even the low credit situation can be tackled. It would help if you are keen on this part and it can be easier to borrow money to buy your dream home.

Income is certainly a strong point but does not forget to pay equal heed to other factors. Salary – outgoing ratio, length of credit history, type of credit mix, every small component acts significantly. Your struggle for a mortgage can end with adequate investment of efforts in all the necessary fields. By moving forward in the right direction, you can quickly get the answer for how to get a mortgage with bad credit with good income from Shinemortgages.co.uk.

The only rule is, stay strong in personal finances, and nothing can stop you from borrowing funds.

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