Adverse Credit Mortgage
Best Buy Mortgage
Flexi Mortgage
First Time Buyers
Buy to Let
125% Mortgages
Remortgages
Self Certification Mortgage
Buy to Let Mortgages
Graduate Mortgage
Right to Buy Mortgages
Home Improvement Loans
Offset Mortgages
Lifetime Mortgage
(Equity Release)
Self Employed Mortgages
How to save money on Your Mortgage
Islamic Mortgages
Self Build Mortgages
Commercial Mortgages
Mortgage Options
MORTGAGE INFORMATION
Leasehold property guide Moving Home How a Mortgage Works Leasehold Types Glossary of Legal Terms More Legal Lingo Different Mortgage Types Glossary of Terms How to keep your home safe Buying a Home Glossary of Mortgage Terms Buying a House in Scotland
LINKS to OTHER SITES
Bad Credit Mortgages
What are bad credit mortgages?
An adverse credit mortgage is also known by the following names.
They all refer to the same basic type of mortgage, namely one where the applicant has a history of bad credit.- Adverse Credit
- Bad credit loan
- Non standard mortgage
- Poor credit loans
- Credit impaired loans
Do you need to apply for a Bad Credit Mortgage?
Bad credit mortgages are for people who have an adverse credit history.A bad credit history could include:
- County Court Judgements (CCJ's)
- Mortgage or rent arrears
- Self employed - Although you can apply for a self certificate mortgage
- Decrees (Scotland)
- Bankruptcy
- I.V.A
- Trust deeds (Scotland)
Lenders may even turn you down if you have changed address many times or if you are an entrepreneur without 3 years worth of audited accounts.
Self-employed borrowers may have to apply for a mortgage via specialist lenders but may also apply for what is termed self-certificate mortgages, meaning they declare their earnings without having to provide evidence of a set guaranteed salary.
It is estimated that one in four British people would not qualify for a standard mortgage from a high street lender. (Source: Council of Mortgage Lenders: - 2004) This means they require specialist lenders in order to acquire a mortgage. Demand for bad credit mortgages has risen and so too has the number of lenders catering for this need in the UK today including even some mainstream lenders who now will consider lending to people with an adverse or bad credit history.
Pro's and con's of an bad credit mortgage
Lending money is all about risk. A Lender will weigh up the risk factor of lending money to an individual and decide whether they are likely to get their money back with interest without too much bother. Some lenders will simply not lend to high-risk category borrowers, others will and adjust their interest rates accordingly. This means you may have to pay higher interest rates on your mortgage. On the positive side you get a home to live in that belongs to you, and if you repay you mortgage back as required by the lender, after three years your credit history will have benefited considerably.Climbing the ladder to owning your own home bad debt free
This means that after three years you could remortgage (switch mortgage lenders) to a high street lender and enjoy massive savings on discount interest rates. It's all about climbing the ladder from adverse credit history and no property at the bottom to positive credit history and ownership of property at the top.We specialise in bad credit mortgages and bad credit remortgages and you can contact us for no obligation assistance.
Just either give us a call on 0844 800 1137 or use the brief ENQUIRY FORM and see how we can help you.
