Bad Credit Mortgages
Mortgages with Adverse Credit
Nearly one in four mortgage applicants are turned down by traditional lenders due to a history of bad or adverse credit.
However, now that there are a number of specialist non standard lenders to choose from, it is even easier to borrow if you have a bad credit history.
Our experienced brokers are willing to look into all circumstances to help you successfully apply for a mortgage. They will source the products investigating the whole of the market, look at exclusive deals from specialist lenders, fill out your mortgage application forms and not charge you fees!
Nearly 25% of all mortgage applicants are turned down by traditional lenders and the majority of these will have been turned down because they have a poor credit history.
What can affect my credit history?
- CCJs — County Court Judgements
- Bankrupcy
- Repossesion
- Not having a bank account
- Mortgage arrears
- Not being on an electoral roll
- Unemployment
- Being in receipt of income benefits
- Self employment
So a poor credit history can be caused by any of the above and these can sometimes be very trivial, you may have unwittingly missed a payment from a catalogue company or have an old unpaid telephone bill hanging around from years ago.
So if I have impaired credit who will lend me funds for a mortgage?
There are many different lenders in the UK specialising in Non Standard lending which is also known as credit-impaired lending or sub prime lending. Many of these lenders are in fact part of a mainstream traditional lender but trade under a different brand. These Non Standard lenders will look at each case individually and will access each for its level of risk. Obviously the risk to the lender is greater than for a mainstream borrower and as such, your mortgage interest rate will be a little higher than for standard mortgages. However, there is still a good range of rates including discounted, fixed and capped rate deals available.
How much can I borrow?
In the past the maximum loan to value was just 80% but now it is possible to borrow up to 90% of the value of the property.
Will I be able to get a mainstream product in the future?
Yes, All non standard lenders take the view that they will try to get you on track for a cheaper standard mortgage product within three years. This is obviously subject to you keeping up your repayments on your mortgage and any other loans you have.
How can I check my Credit Record?
Very often people are completely unaware they have County Court Judgements (CCJs) against them until they apply for credit or a loan of some kind a mortgage application being one of them. Once applied for it will then be rejected and you will then need to find out how you are able to clear any bad records against your name. In fact there are over 9 million County Court judgments registered in the UK. They are not recorded if paid in full within 28 days but what many people don't realise is that judgments remain on file for 6 years.
There are three main credit agencies in the U.K Experian, Equifax and Callcredit, and their contact details can be found below. For a small fee you can get a copy of your credit record.
Credit Reference Agencies
Experian
Consumer Help Services
PO Box 8000
Nottingham
NG1 5GX
www.experian.co.uk
Equifax
Credit File Advice Centre
PO Box 1140
Bradford
BD1 5US
www.equifax.co.uk
Callcredit PLC
Consumer Services Team
PO Box 491
Leeds
LS3 1WZ
www.callcredit.co.uk
Bad Credit mortgages for all your adverse mortgage needs in the UK when you are looking to secure a mortgage from mortgages.grovelawn.co.uk
Apply for an Adverse UK Mortgage
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
This site is intended for UK residents only. The overall cost for adverse credit mortgages for comparison is 8.9% APR. The actual rate will depend on your circumstances. APR variable and based on a usual case. There may be an additional charge for advise on these loans.
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Mortgages.Grovelawn.co.uk & Grovelawn Internet Services Limited does not provide personalised financial advice.
