The lower your score, the higher the risk lenders will consider you to be.

A Mortgage Lender will look at your credit score as well as your ability to make repayments before deciding whether to approve any mortgage application.

Mortgage Lenders will generally get reports from one of the Credit Reference Agencies.

• Your current level of debt
• Whether there have been any issues with repayments in the past, have you made payments on time and for the minimum amount.
• Whether you have had any late payments (or missing payments)
• If you have been declared bankrupt, or have an IVA (stands for Individual Voluntary Arrangement), part of a Debt Management Plan, have a Debt Relief Order in situ – or if you have had any of these in the past if you have been discharged from them.
• If there are any County Court Judgements against you – often referred to as CCJs, if yes, how long ago they were issued.
• The number of credit applications you have made in the past and over what timeline.

There are plenty of ways in which you can do this, our advisors are happy to share with you the ways in which you might try in order to see a difference:

1. Check your credit file

   It is a good idea to check your credit file and score and review the information held in your credit file regularly. This way, you’ll be able to see any improvements and know when you will be able to apply for a mortgage.
   Look for errors on your report, including potentially fraudulent activity and report these straight away to the credit agency and any lenders.

2. Make sure you are on the electoral roll at your current address

   Having your name included on the electoral roll makes it easier to get credit as lenders see it as a sign of stability; that you have a permanent address which you are happy to share.

3. Make repayments on time to your credit cards / bills

   Late payments will have an impact on your credit score, although the impact does lessen the older they are.

4. Reduce any existing debt

   Your advisor can talk you through which of your existing debt you might try to reduce before applying for a mortgage. The lower your debt levels, the more likely you are to be approved by lenders of bad credit mortgages, even if you can only reduce the amount of debt by a small amount.

5. Start building up your credit score

   As counter-intuitive this might sound, it is possible to have a positive impact on your credit score by taking out a credit building credit card. Make small purchases and pay off at least the minimum each month if you can pay it off in full. Do not do this if you are applying for a bad credit mortgage within the next few months as each card application will appear as a hard search on your credit report.

6. Stop applying for credit

   The more applications you make, the worse this looks to lenders as they see it as a sign you aren’t in control of your finances. If you apply for credit and get turned down, do not go and apply somewhere else this will damage your credit further. If you want to find out if you are likely to be approved, only complete soft searches as these won’t show up on your credit report.

Setting up a limited company is simple. You can register with Companies House online or by post and it costs from just £12.

Here are the key things you’ll need when registering your limited company.

• Company Name and Address
• You’ll need to create a unique company name – you can check it online against the current register
• The address can be your residential address
• Directors and Shareholders details
• You need to appoint at least one Director of the company
• You can add additional Directors and/or a company secretary
• Each shareholder should be allocated a percentage share of the company
• Any shareholder with a holding greater than 25% is a Person with Significant Control (PSC)
• Each PSC’s name, month and year of birth, nationality and service address will feature on the public register
• Definition of Business Activity.

You should always speak to a qualified accountant about the type of company you’re creating. It’s also worth asking your tax adviser whether the company should be a Special Purpose Vehicle (SPV) and for them to recommend the correct SIC code to use.

You will also be required to seek independent legal advice.

• Once Your Company Is Registered:
  You must register for Corporation Tax within 3 months
• You need to set up a business bank account

Retirement Interest Only (RIO) mortgage are available for homeowners over the age of 55. Lenders will judge the mortgage affordability based on income through your retirement. They will consider incomes from your Pension, Investments, or Buy to Let income.