| Bad credit mortgages are for people having a problem | | | | Lenders tend to turn away borrowers who've |
| getting a loan or a mortgage to purchase property due | | | | experienced problems in the past or are self |
| to poor credit issues such as a credit record blemished | | | | employed. Bad credit mortgage Lenders on the other |
| with frequent late payments, inability to pay off debts | | | | hand will find a solution for you even if you've had |
| on time, bankruptcy, court judgments, criminal cases | | | | CCJ's, IVA, Bankruptcy, self employed or had |
| etc. | | | | mortgage arrears. |
| Bad credit mortgages are also known as sub-prime | | | | Basic requirements for most bad credit mortgage |
| mortgages, adverse credit mortgages, or non-status | | | | Lenders are: You are a resident in the UK, over the |
| mortgages and are intended for people who are not | | | | age of 21 and have an income. There are many |
| able to qualify for traditional mortgages. | | | | different bad credit mortgages available from various |
| This type of mortgage is becoming common in todays | | | | sub-prime Lenders aimed at helping people with bad |
| market and many of the mortgage Lenders are now | | | | credit get a foot on the property ladder. |
| offering very competitive mortgage products to cater | | | | Interest Rates |
| for this competitive market. | | | | These may vary depending on the circumstances, |
| In the current environment, a bad credit rating is not the | | | | location, and severity of the bad credit.Interest rates on |
| obstacle it once was; since 1 in 4 people in the UK are | | | | bad credit loans are set based on the time between |
| now estimated to have a bad credit rating, many | | | | credit problems and mortgage application. Interest |
| Lenders are having to adjust to accommodate these | | | | rates are normally higher than for regular clean credit |
| consumers and bad credit mortgages are the answer. | | | | mortgage products, but because of the level of |
| Bad credit mortgages are available for both purchasing | | | | competition in the Lender market they're not |
| and re-mortgaging property. The amount the Lender | | | | overbearing. |
| approves for you to borrow will depend on your | | | | Borrowers should assess each bad credit mortgage |
| current financial situation and the value of your | | | | offer based on its overall cost and not just the rate of |
| property; the Lender will also check how much existing | | | | interest that they will pay in the first few years. |
| debt you have and your monthly expenditure in | | | | Brokers |
| comparison to your monthly income. Many impaired | | | | Before approaching abroker, be sure that you have a |
| credit Lenders are not willing to advance more than | | | | bad credit rating, some rogue Mortgage Brokers may |
| 75% of the property value. | | | | try to sell you expensive bad credit mortgages even |
| Lenders | | | | though they know you could have been accepted for |
| Lenders who specialize in bad credit mortgages are | | | | a normal mortgage. |
| able to offer better service to people with bad credit. | | | | Conclusion |
| Your credit score is used to determine whether you | | | | Bad credit mortgages are also a way to boost your |
| are eligible for a bad credit loan. A higher interest rate | | | | credit rating; after about 3 years of paying into a bad |
| is charged for bad credit mortgages as compensation | | | | credit mortgage, you will have repaired your credit |
| for the risk they take. | | | | rating. You will then be in a position to re-mortgage |
| Not everybody can meet the requirements for a | | | | with a mainstream Lender and get a better deal. |
| regular mortgage from a mainstream Lender, most | | | | |