Adverse Credit Mortgages
Adverse credit mortgages are designed for people who have had financial difficulties in the past. In order to apply for an adverse credit mortgage you will need to find a lender who specialises in providing mortgages to those with credit problems. High-street lenders do not provide this type of mortgage.
The most common reason for being refused a standard mortgage is generally because of a poor credit rating or an adverse credit history. Adverse credit lenders make such mortgages much more obtainable for those that fall into one of these two categories.
Adverse credit status can consist of any of the following:
- Mortgage or loan payments that are in arrears.
- Any CCjs on your credit report.
- Bankruptcies showing.
There are many other factors that play a part in having credit problems, and even minor issues can create problems when trying to get a mortgage:
- If you don’t have a credit record.
- Being late with bill payments.
- Student loan debts.
These are just a few of the issues that play part in a bad credit history. Fixing your credit before applying for any type of mortgage will always help to increase your chances of obtaining a loan with a much lower interest rate.
How Do I Qualify For An Adverse Credit Mortgage?
There are many lenders that specialise in lending to people that have an adverse credit history, but there are certain requirements that you may need to satisfy, such as having a large deposit. You will need to speak to one of our mortgage consultants to clarify what is required.Interest rates are always higher for people with poor or adverse credit histories because you are a higher risk, and it’s a way for the lender to protect themselves if you were to default on the mortgage payment.
Some adverse credit mortgage lenders offer credit repair mortgages. This is a great opportunity to begin improving your credit rating and at some point in the future obtain a conventional mortgage that will have a much lower interest rate. In order to do this you will need to make your monthly mortgage payments on time for a substantial amount of time. There are other options that may also be available to help improve your credit rating.