Bad credit mortgages and remortgages for buyers with a poor credit history

Today in the UK many more people that apply for a mortgage are refused a standard mortgage. As such there has been an enormous growth in the bad credit / adverse market.

However with lenders tightening their criteria it can be more difficult to find a suitable product if you have bad credit or a low credit score.

There are three different forms of bad credit including light, medium and heavy adverse. The idea behind a bad credit mortgage is that if you can fit the lenders criteia and get a mortgage albeit at a higher rate to standard mortgages, then you can start to rebuild your credit history and in time as long as you make your regular monthly repayments will be able to apply for a standard mortgage product with lower interest rates.

Information for Mortgages for those with a bad credit history

An increasing number of UK applicants are turned down for a standard mortgage and in the main this is due to the potential borrower having a bad credit history. Having a bad credit history could mean that you have a CCJ - County Court Judgments, mortgage or loan arrears or defaults or even been declared bankruptcy in the past or it could just be that you have in the past made a late payment (s) on a credit card or mortgage that at the time you didn't even realise was significant for gaining future credit. If this is the case you may well fall into the category of bad credit history.

Before a lender decides to offer you a mortgage or loan they do a credit check on you. This credit check will show any of the above situations but even if you are found to have a bad credit history you could still qualify for a mortgage whether it is through a high street lender or sub prime lender.

You may have a bad credit history if you have one of the following:-

(CCJ) County Court Judgements, IVA, Bankruptcy, Mortgage arrears or any late payments on other credit arrangements including loans and credit cards.

Is a bad debt mortgage different to a standard mortgage?

Yes it is known as a sub prime mortgage and as such incurs higher interest rates because of the added risk the lender is taking. However this market has become more competitive over the last couple of years and with our relationship with these specialist lenders we are able to offer very competitive fixed rate deals even though you have a poor credit history.

Will my credit history improve after taking a bad credit mortgage?

As long as you continue to make your regular monthly repayments on time then after normally two years history of this we can then look to finding you a standard mortgage at lower interest rates.

Will I need a deposit?

When applying for an adverse credit mortgage a larger deposit is normally required.

What if I have existing debts?

Some lenders will look at debt consolidation if you have existing debts and as such may include these debts within your mortgage offer.

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