Worried about debt?

Coping with debt is difficult. You might be feeling overwhelmed, worried, and pessimistic about the future. It’s normal to feel this way if you’re going through a hard time, but it’s okay to ask for help. There are plenty of support services out there to help you find your way through this period and towards a more stable future. Whether you’re struggling with debt due to redundancy, illness, gambling, or something else, you’re not alone. And, if you’re concerned about the effect your past debt might have on your chances of mortgage approval, the good news is that it isn’t the end of the story. Our advisors are here to help.

Debt can be frightening, but you don’t have to struggle alone.

Monster static on grey

Will having debt affect my mortgage?

Having debt doesn’t mean you can’t get a mortgage, it just means you might have fewer options available to you than someone without debt. It’s likely you’ll have to find a specialist lender, as many high street banks might consider you a high risk applicant. However, lenders are human too, and many will be able to look past your adverse credit history.

When the Bank Says No specialises in helping non-standard mortgage applicants achieve the finance they need to buy their home. We know that people don’t always fit into the boxes high street lenders want to put them in. We have a range of information available on our website for those applying for a mortgage with debt – current or historic – whether your credit file contains late payments, bankruptcy, IVAs, or you’re currently on a debt management plans. Having a low credit score or being a first time buyer with bad credit doesn’t mean a mortgage is impossible. Our friendly team is here to listen and understand your situation, then help you work out the best way forwards.

Should I pay off debt before applying for a mortgage?

When taking out a secured loan, it’s always advisable to have as little other debt as possible. For many lenders, having other debts may make them question your ability to take on another significant financial commitment. If you are in debt and are looking to apply for a mortgage, paying back as much as possible may boost your chances of approval and increase the options available. Not only will doing so improve your affordability, but it will also demonstrate your willingness to repay debt.

What to do if you’re struggling with debt.

If you’re struggling to keep up with your debts, the most important thing to do is ask for help. There are plenty of support services out there designed for people in similar situations to you. Citizens Advice is a great resource for advice and guidance on what to do next. You shouldn’t feel ashamed or like you’re a bad person; anyone can find themselves in debt, but it doesn’t have to define you. If you’re suffering in silence, it’s time to reach out.