CREDIT DIFFICULTIES

There are various ways you can end up with bad credit. You may have been late with payments on a loan, missed payments on your credit cards, got into arrears on your mortgage, had a County Court Judgment (CCJ) registered against you, defaulted on a finance agreement, been the subject of an Individual Voluntary Arrangement (IVA), or been declared bankrupt.

It is estimated that late payments, mortgage arrears, bad debts, credit problems, IVAs and CCJs will mean that around 25% of people will face problems trying to obtain a mortgage or remortgage from a traditional high-street lender.

There are a number of specialist bad credit mortgage lenders in the UK (known as adverse lenders), and by applying to one of these, you will have a better chance of obtaining a mortgage even if you do have bad credit.

Adverse credit mortgages work the same way as normal (prime) mortgages, but they generally require a greater deposit and have higher interest rates to reflect the greater degree of risk for the mortgage lender.

The good news is that once you have been accepted for an adverse credit mortgage, then so long as you keep up the repayments, your credit profile will reflect your improved credit standing. You can then look to move away from an adverse credit mortgage by taking out a remortgage with a standard lender again.

For a free initial consultation to determine whether a mortgage is possible for you - contact us now.

Mortgage Select will charge a £695 fee on completion. Your home or property may be repossessed if you do not keep up your repayments on your mortgage.