Expert Advice On Lifetime Mortgages For Those With Bad Credit

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Buying a financial product such as a mortgage can be the biggest decision made in our lives. It is for this reason that impartial advice is critical from qualified advisors.

Lifetime mortgage bad credit

 

A lifetime mortgage is the process of using part of the value of a property to release cash without having to move. It can be difficult, but not impossible to achieve, if you have a bad credit history.

So, how does bad credit affect lifetime mortgages? As part of any application for a lifetime mortgage the lender will check your credit report. If you have bad credit you might be concerned about how it has a negative impact on your application.

However, having bad credit does not mean it is impossible for you to be approved for a lifetime mortgage, the most important thing you can do on any application like this is be honest. Also, speaking to one of our specialist advisers at Finance Advice Centre will help give you all the information you need to ensure your lifetime mortgage application has the best chance of being approved.

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Can you get a lifetime mortgage with a bad credit history?

Credit card debt

For finance that requires monthly payments the lender will look at your credit card debt and your ability to make repayments. However, with an lifetime mortgage plan it is a bit different. As there are no monthly payments you need to make, your credit card debt will not be considered in your lifetime mortgage application. The debt is unsecured with credit cards, this means that your credit card is not linked to your property. If you decide to repay your credit cards with lifetime mortgage funds, it is your responsibility to pay it back.

Repaying your credit cards with lifetime mortgage funds means you will be moving your debt from unsecured to secured. It is extremely important you get some advice on the implications of doing so from an expert adviser at Finance Advice Centre.

Failing to make your minimum monthly payments when you have credit card debt could also lead you to be in arrears. As a result, this could lead to other credit issues like CCJs and charging orders.

Arrears

You can still get a lifetime mortgage if you have arrears. Debts that are secured against your property, such as a mortgage with arrears, will have to be repaid in full. If the debt is unsecured, for example, personal loan arrears, the lender will consider the details of your arrears, including the total amount you owe and the number of missed payments. Even though the unsecured debts are not tied to your property, the provider does not want creditors to apply to the courts to have them secured. So, the lender could ask you to repay the arrears as a condition of the lifetime mortgage.

 

CCJs

self-employed mortgagesCounty Court Judgements (CCJ’s) relate to any debts that you have left unpaid. The county court will have adjudicated that the debt is valid and needs to be repaid for the CCJ to be registered and unless you settle it within a month, it will stay on your file for six years.

For a lifetime mortgage application your credit record will be checked by the lender. If you have any CCJ’s on record they will need to be settled, depending on how much you owe, lenders can request that the CCJ is repaid either:

· Before they release the lifetime mortgage funds
· On completion by your solicitor before they transfer you the rest of the funds or
· By you after receiving the lifetime mortgage funds (usually within sixth months)

As you can see here it is possible that you can still get a lifetime mortgage with bad credit. For further advice and help with arranging this, contact Finance Advice Centre today to speak to one of our professional advisers.

A lifetime mortgage will be secured against your home.

See what our customers think ...

What a Fantastic Service from start to finish. Great customer support from Ben Patten & Joe Frayne, superb product knowledge and exceptionally responsive to emails/calls, we can 100% recommend the Finance Advice Centre Ltd , they got us a great deal on a mortgage with suited life insurance, especially during this very difficult Covid 19 time ……

Ian Stamp

From start to finish, Greig and Emily were very helpful with our mortgage application. The advice Greig gave us was very clear and informed. They were always available either by phone or email to answer any questions we had. The whole process was made a lot easier because of the work they did. Would thoroughly recommend

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