Adverse credit mortgages

UK Bad Credit Mortgages

It is a lot easier now to secure a mortgage if you have a less than healthy credit history. You will have to pay a higher interest rate as the lender perceives that it is facing a higher risk of losing money. Many lenders do, however, appreciate that a blip in your past is not necessarily a true mirror of your present financial situation. You can receive a copy of your credit report from the agency the lender approached and will have the opportunity to clear up any misunderstandings which may have occurred if you discover a discrepancy.

You do not need to have any CCJ’s against your name to be refused credit. However, a marriage break up, loss of job or a minor problem in the past will mean that the product you are offered will not be as punitive as the one offered if you were a discharged bankrupt.

Adverse credit lenders may employ specialist underwriters to asses your case individually. They will be assessing your ability to pay the repayments in the future. They will look at your past and find out why your rating is low. You will have to supply full details of your finances as well as proof of income and of any recent loan or mortgage repayments. You will need to have a positive record of payments for up to a year and have made good any payments outstanding.

Some lenders offer credit repair mortgages that will help you to improve your credit status and reward regular repayments. Over a period of years, your annual interest rate is reduced and ultimately reverts to the lender’s SVR, providing you have maintained a spotless credit record throughout the period.

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