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Bad Credit Mortgages
Many people these days have a bad credit mortgage rating, often
due to circumstances beyond their own control. You may need a bad
credit mortgage (also known as impaired credit mortgages, or sub
prime mortgages) if you have been declared bankrupt in the past,
have fallen into arrears on a mortgage or suffered other debt
problems. Or you may simply have a CCJ (County Court Judgement)
against your name, due to non-payment of a utility bill, for
example, which may necessitate a bad credit mortgage when you come
to buy a property.
Mortgage Lenders for Bad Credit
Fortunately, it is easy to find a mortgage lender for bad
credit these days. Whereas in the past just a handful of
specialist bad credit mortgage lenders catered for this section of
the market, now every bank and building society has a division
specialising in bad credit mortgages and bad credit remortgages
(also known as non-conforming or credit-averse).
The downside is that you may have to pay a slightly higher
interest rate than you would otherwise be charged for a regular
mortgage.
But the good news is that a full range of fixed, capped,
discounts, trackers and flexible bad credit mortgages and bad
credit remortgages should be available to you.
As there is a wide range of bad credit mortgage lenders
available, it is more important than ever to shop around for a
deal and a rate that suits you.
As a starting point, our handy mortgage calculator will tell
you how much a mortgage will cost you on a monthly basis, so you
can make comparisons. We have access to all of the bad credit
mortgage deals available on the market, many of which may not be
available direct to the public.
An estimated one in four people in the UK would be turned
down by a mainstream mortgage lender. This is because not everyone
fits the standard criteria lenders apply. But don't worry if you
have been refused credit by a mortgage lender - help is at hand.
These days there are dozens of sub prime mortgage lenders
(or bad credit mortgage lenders), who cater for individual cases.
Some of them are standalone, others are owned by mainstream banks
and building societies. All of them offer sub prime mortgage
alternatives for those bad credit mortgage borrowers who may not
fit the standard mould. Bad credit mortgage lenders can give
financial help to a range of different borrower types.
Bankruptcy and Mortgage Arrears
If you have a bad credit rating, if your requirements are out
of the ordinary or if you are self-employed you may fall into this
category. You may have a bad credit rating if you have experienced
bankruptcy or mortgage arrears in the past. But you may also have
a bad credit rating if you have never had a bank account or if you
have lived at lots of different addresses, or simply have a County
Court Judgement (CCJ).
Bad credit mortgage lenders offer a wide range of deals to
bad credit mortgage borrowers - but be aware that the interest
rates charged on bad credit mortgages will be somewhat higher than
standard rates.
But once you have been with a sub prime lender for three
years, as long as you keep up your mortgage payments you will have
established a new credit rating and can return to the mainstream
market with a new deal at a lower rate. Non-standard sub prime
borrowers may also be referred to as 'sub-prime', 'complex prime'
and 'credit impaired'.
Check your Credit Rating
If your mortgage application has been rejected, or you simply
suspect that you may have a bad credit rating, you can access your
credit record via one of the following:
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Pros and Cons of Bad Credit Mortgages
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Bad credit mortgages allow thousands of
people access to home loans they might otherwise
not get. |
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Increased competition means the interest
rates charged have come down considerably in
recent years. |
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A full range of mortgage types is
available. |
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They are still more expensive than
mainstream mortgages and will remain so. |
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You can only get a bad credit mortgage via
a mortgage broker. |
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For more information or to discuss your particular
requirement, click here to contact us. |
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