When it comes to bad credit mortgages, some banks and building societies can take on a very cautious attitude to who they’ll lend to. Those particular lenders only want to deal with people who have faultless credit histories, perfect work records and large deposits. However, at Finance Advice Centre we live in the real world. We realise that financial difficulties can affect everyone at any time and usually without warning.
Having Defaults, County Court Judgement’s (CCJ’s), being previously declared Bankrupt or even having a home repossessed can make it difficult to find a mortgage. Sometimes people get into debt through no fault of their own. Even if they have been to blame, it’s only right that they want to get back on the property ladder. Or even get themselves a better remortgage deal even if they do have adverse credit.
The good news is that Finance Advice Centre specialise in doing just that. Although the majority of High St lenders want you to have a perfect credit history, it’s refreshing to know that there are more and more lenders coming back into the market who will provide adverse credit mortgages again. Interest rates are unlikely to match standard mortgages; lenders in the adverse credit market will charge higher rates. This is sometimes described as ‘sub-prime’ or ‘non-conforming’.
While the lenders clearly want to keep some degree of separation between their standard and adverse credit divisions, the deals they are offering are less punitive than in the past. Most lenders will also cut the interest rate if borrowers keep up a good payment record. And, after three years, it may be possible to switch to a standard mortgage.
The lender will set the interest rate based on how much of a risk they believe you may pose. The application is thoroughly checked before any interest rate is set. A mortgage may not be available in all cases. However, we will always let you know exactly where you stand. Even in terms of when you might be able to get a mortgage and at what sort of interest rate. Our commitment to you is that we will never leave you wondering whether or not it can be done.
Simply complete the enquiry form on this page and we’ll get an advisor who specialises in your type of enquiry to call you at a time that’s convenient for you. Alternatively, if you’d like some advice immediately, call us on freephone 0800 103 2655 or 01332 821 340.