Mortgages for people with bad credit
Are you looking for a mortgage with a bad credit rating.
Mortgages for people with bad credit are virtually non-existent with the main high street lenders, hence getting a mortgage with a bad credit rating is almost impossible with the major lenders, which is why if you have been trying you will almost certainly have failed. So stop applying for regular mortgages and start looking into the bad credit mortgage market.
Traditional mortgage providers rarely offer mortgages to people with bad credit. Why? Well if you’ve had trouble paying your bills, credit cards or loans in the past, you’re a bad risk. So lending you tens or hundreds of thousands of pounds could be a bad idea and be a risk that the lender is not prepared to take.
However with the recent increase in the number of people in this situation, the demand has risen for suitable mortgages for people with bad credit. The big lenders are still very wary of bad credit risks, hence it has fallen to more specialist lenders to fill the gap in the market.
As a result, the bad credit mortgage market is expanding, and is competitive, which means that customers suffering from poor credit can find a range of mortgage products that suit their needs and that help them get their finances back on track.
So, what are Mortgages for People With Bad Credit?
Mortgages for people with bad credit are financial products that are specifically designed to let you buy your own home even if you have a bad credit rating.
• Interest rates on these mortgages are typically marginally higher than for traditional mortgages. This is because the risk to the lender is higher.
• There may be some additional conditions on your mortgage, which are placed there to give security to the lender. These might include a larger arrangement fee at the start of the mortgage, or stricter redemption penalties.
• These mortgages for people with bad credit, are usually only made available through specialist mortgage advisors, who, in the UK, must be authorised by the Financial Services Authority (FSA).
• A mortgage for people with bad credit can help you to address your financial difficulties and even to improve your credit rating over the long term.
Remember that if you are a person with bad credit, getting rejected by lenders for traditional mortgage products is something that gets added to your credit history. Avoid this by speaking to an independent, experienced mortgage advisor who can help you buy your house with a mortgage that’s designed for people with bad credit.
For more information on Mortgages for people with bad credit
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