Learn about getting a mortgage with a criminal conviction here. We discuss how a criminal conviction can affect a mortgage, improving your credit score & more.
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It can be harder for people with criminal convictions to secure a mortgage. This is because many lenders see convicted criminals as high risk borrowers.
But worry not — many people in the UK with criminal convictions have gone on to get mortgages. In this guide we explore the options that are available to those who have been convicted of a crime and want to get a mortgage. We’ll also discuss how you can improve your chances of being approved for a mortgage, even with a criminal record.
A criminal conviction is a decision that is made by a court of law that an individual is guilty of a crime. This decision is made after a trial in which evidence is presented and the individual has an opportunity to defend themselves. A criminal conviction can result in a range of penalties, including imprisonment, fines, community service and a criminal record. In some cases, a criminal conviction can also result in the loss of certain rights, such as the right to vote. A criminal conviction can have a significant impact on an individual’s life, making it difficult to secure housing, employment and financial services.
If you have been convicted of a crime or completed a prison sentence, it may be more challenging to get approved for a mortgage.
Some lenders will consider your application depending on the conviction. For example, it’s highly unlikely you’ll find a mortgage lender willing to lend to you if you have a criminal conviction related to financial fraud.
Your lender may investigate your criminal history when you disclose your convictions. For example, if your crimes are tied to fraud, money laundering, or financial crimes in general, lenders will be extremely hesitant to grant you a mortgage. In comparison, if your offences are connected to traffic violations, it’s unlikely to have a significant impact on your mortgage approval.
If your criminal record has hurt your credit score, obtaining a mortgage may be more difficult. That doesn’t imply you should refrain from applying if you have bad credit. There are subprime lenders that can consider individuals with adverse or bad credit.
As part of the application process, the broker or lender must perform due diligence checks. These will often flag any sort of criminal record you may have.
Whether your criminal conviction will affect your ability to get a mortgage will depend on the nature of the crime and the lender’s criteria.
If you have a criminal record and are looking to apply for a mortgage, the best way is to seek support through independent mortgage brokers like John Charcol. We’re able to work with you and find lenders whose criteria align with your situation. As we know which lenders will be able to consider your application, we’ll be able to find you the best deal for your situation.
If you have any questions or would like to know more about applying for a mortgage with a criminal conviction, please don’t hesitate to get in touch with us on 0808 159 3110. Our expert advisers are on hand to offer mortgage guidance and support every step of the way.
The type of mortgage available to you won’t necessarily be affected if you have a criminal record. Whether you want a home mover mortgage, first-time buyer mortgage, remortgage, or buy-to-let, etc. will have little to no bearing on whether the lender will consider you. It ultimately comes down to the lender’s criteria and the nature of your criminal conviction.
To qualify for a criminal record mortgage, you must pass the lender’s affordability examination like with any other mortgage. The assessment may include questions about:
If your criminal conviction has affected your credit profile, you may still be able to get a mortgage. A subprime mortgage lender may require a larger deposit and/or charge you a higher interest rate. You can get an overall view of your credit profile by checking your credit score with credit reference agencies.
If you find that your credit score is lower than you expected, you can try to improve it by:
Alongside working on your credit score, there are a few things you can do to improve your chances of securing the best deal for your situation:
