Bad credit mortgage / Adverse credit mortgage / CCJ mortgage
Some applicants may be denied loans due to bad credit history
or bad credit scoring on their mortgage application. However, nowadays
it is possible even for those with bad or adverse credit to obtain
a mortgage in the UK.
Lenders who are willing to lend in this market are commonly known
as 'sub-prime' and this mortgage market has grown considerably,
led primarily by financial institutions from the US. However, borrowers
have to pay a price for these mortgages, with rates a few percentage
points higher than those set by mainstream lenders.
The sub-prime mortgage market can be broken down into two distinct
sectors. The first is those people with a bad credit history. Many
people may have a bad credit history, including County Court Judgements
(CCJs) or previous mortgage arrears. Even if the mortgage arrears
are paid off, the missed payments will be listed in the credit records.
Redundancy is another common reason why people can find themselves
with bad credit.
The second distinct sector consists of borrowers who have clean
credit records, but who have problems proving sufficient 'earned'
income to attract a mainstream lender, for example self-employed
people. Sometimes, lenders categorise this sector as 'complex prime'
- people who do not fit the mainstream lender's terms, but who are
perfectly deserving of a home loan and can easily afford the payments.
Borrowers should be aware that if they make all their payments
on a sub-prime mortgage in full and on time, then within a few years
a sound repayment history will be created and they may be able re-mortgage
with mainstream lenders with lower mortgage rates.
We are mortgage brokers that specialise in the bad credit mortgage
sector. Our advisors are very experienced in this area and so can
recommend the right mortgage for you based on your credit background.
Previously, people with adverse credit normally had to pay much
higher interest rates than mainstream mortgages. Today, things are
a lot different. In 2002, one in four mortgages in the UK was a
'sub-prime' mortgage. Consequently, there is a lot more choice available
now and we can now arrange adverse credit mortgages at rates that
are only slightly above the very best rates offered on the high
street.
We offer professional and confidential advice. We deal with your
application quickly and we search all the lenders to find the best
mortgage and best interest rate for your individual circumstances.
For a fast, free mortgage quote, click on the link
below and see what we can do for you!
Click
here for online mortgage quote uk
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