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The inside to adverse credit mortgages
Before we go into the ins and outs of adverse credit mortgages it is important to clarify the term adverse credit mortgages. Adverse credit mortgages can be known as many other terms such bad credit mortgages, impaired mortgages, sub prime mortgages and non-conforming mortgages. In summary they all point to the same type of mortgage product.
Why would you need to consider a adverse credit mortgage?
You may not have even realised that you are in need of this type of product until your traditional mortgage application with a well known high street lender was rejected. The lender may have told you about the reasons why and will usually come under the following areas:
- Previous credit difficulties
- County Court Judgments known as CCJ’s
- Bankruptcy
- Areas and default
All the above factors will affect your personal credit profile known as your credit file. The information on this file can easily be accessed and will allow you to identify what reasons a potential mortgage lender may see you as a lending risk.
Are adverse credit mortgages bad for my credit file?
If you do get rejected then this will get recorded on your credit file, but more than likely if you have done your research and comparisons your application should not be a problem. Once you have got over the application hurdle then you could be well on the way to making a positive impact on repairing your credit status. Just keep paying your monthly payments on time for 3 years and you could end up wiping your slate clean and move to another traditional mortgage provider.
How much will an adverse credit mortgage provider borrow?
This will entirely depend on your personal circumstances and the mortgage lender you work with. The lender will base their decision on lending criteria that takes into account your levels of debts owed, the severity of things like your missed payments on credit cards and other loans.
How do I apply for an adverse credit mortgage?
As well as visiting the major high street lenders and brokers it can be often just a easier and quicker to use online independent companies that are impartial and can provide you access to the best deals.
When applying for adverse credit mortgages you can expect to pay more in terms of interest rates for the mortgage product, however due to the recent rise in people with problems with cash flow and debt there has been a rise in lenders who now offer adverse credit mortgages.
Make sure you get the best possible deal by not committing to the first offer you get, try and obtain at least 3 quotations. Giving yourself time to compare different mortgage products can save you potentially thousands of pounds.
By completing our simple mortgage quote form we can put you in contact with the top adverse credit mortgage lenders.