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Mortgages for a bad credit history
We specialise in bad credit mortgages and remortgages for people with an adverse credit history. All advisors are fully qualified and search the whole mortgage marketplace (over 60,000 different schemes) with an independent and unbiased view to find the best mortgage deal whatever your credit history.
Your advisor won’t automatically go straight to the usual sub prime lenders that have higher interest rates. They first look to the high street lenders to find you the best deal and, if necessary, then to the sub prime lenders who consider a wider variety of cases and specialise in the bad credit mortgage market.
Your advisor isn't tied to any specific lender or panel of lenders, and will always consider your mortgage deal priority over any revenue in order to maintain an excellent long-term customer relationship.
Our online mortgage enquiry form carries no obligation and should you wish to cancel your application at any stage, there are no penalties and no costs due. If you would like a bad credit mortgage quote use our simple online enquiry form and we will respond within 24 hours with details of the best mortgage for your circumstances.
What is a bad credit history?
Most people have a period in their lives when they are short of money. Usually it is possible to tighten your belt, weather the storm and somehow get through the sticky patch. But sometimes the financial situation either becomes too difficult to manage or does not take priority compared to other matters in your life.
Divorce, redundancy, or illness can leave you with insufficient funds to meet all your mortgage, HP, loan and credit card payments. But even if you fall into arrears just for a short time, the repercussions can last for much longer - credit records usually run for 6 years.
It is estimated that one fifth of mortgage applicants are not considered suitable for loans by the mainstream lenders that operate credit-scoring systems. The reason that people fail such checks is that mainstream lenders operate in a world of percentages. They want a large volume of low risk business - people who have a good credit profile and who appear to represent the most likely group of people to repay their mortgage on time. But if there is something that is flagged in the credit scoring system, most mainstream lenders will regard lending you money as a high-risk activity. Many will not lend you money at all and when you can get a loan, you will undoubtedly have to pay a higher rate of interest than you would do otherwise.
You can fail the credit-scoring test for a variety of reasons, though not necessarily because you have previously defaulted on payments. Some of the more common reasons are as follows:
All these things are normally recorded by the big credit agencies and can prevent you from being offered the standard mortgage products. Unless you have a particularly good relationship with a lender - you may for instance have had current or savings account with them for some time - then you may be forced to go to a non-conforming lender.
CCJ’s, defaults or arrears? We’re here to help.
Having a bad credit history could mean that you have experienced county court judgments (CCJ's), defaults, mortgage arrears or even bankruptcy in the past. Or it could just be that you have made a minor mistake, such as a late payment that you did not even realise was significant. Fortunately it's still likely that you could qualify for a mortgage whether it is through a high street lender or sub prime lender.
Sometimes referred to as a sub prime or non-status mortgage, a bad credit mortgage is designed to help people get back on track even if they have made mistakes in the past such as late mortgage payments.
Light adverse and credit repair mortgages
Light adverse and credit repair mortgages plug the gap between mainstream loans and the more extreme cases of the sub-prime mortgage market.
Credit repair mortgages are schemes that give the borrower an incentive to stay on the straight and narrow by rewarding mortgage borrowers who maintain a 100% credit record. This usually takes the form of successive reductions in the rate of interest payable over a number of years. These are particularly popular among those with minor credit problems who are eager to clear their history but who are open to the idea of being encouraged to take a responsible approach.
Light adverse mortgages are designed for people who are just on the margins of the sub prime market, whose credit history is only slightly less than perfect, but who may well still struggle to get a mortgage from a mainstream lender.
Almost everyone who ends up getting a light adverse or credit repair mortgage would also be accepted for a sub prime mortgage. However, they would be unnecessarily penalised with too high a rate, due to the fact that the plan is designed for people with more serious credit problems. The advantage with a light adverse credit mortgage is that because the mortgage is designed for people with less than severe credit problems, the risk to the lender is lower than with other sub prime mortgages, so the LTV can be higher and the interest rate can be lower.
Past credit events that may call for a light adverse credit mortgage include not appearing on the electoral roll, maintaining several different jobs, moving house repeatedly in a fairly short space of time, very minor CCJ's or ones that are soon to be removed from the credit record following a long spell of unblemished payment records.
How can I get a free mortgage quote?
To get your free mortgage quotes, you just need to enter some basic information into one of our simple online quote forms and your dedicated adviser will search the entire marketplace to find you the best mortgage deals available.
Or, if you prefer, you can call a fully trained adviser on 0800 169 4984. It will only take a few minutes of your time today but could save you thousands of pounds in interest payments, and will eliminate any worries you may have about getting the best deal possible.
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