Bad Credit Mortgage, Adverse Credit Mortgage, Mortgage Broker
What is Bad credit and why do I need a bad credit mortgage. Bad Credit is a credit rating term, it occurs when you have usually either missed payments or defaulted on credit. Credit can be in a form of credit cards or loans or mortgages. If any of these circumstances occur then it would be said that you have bad credit there if you’re in need of a mortgage you would need to get a bad credit mortgage or bad credit remortgage. There are repercussions in having bad credit it means that you have to have a bad credit mortgage (sub prime mortgage) therefore making you high risk client to the mortgage lender so the interest rate will be higher.
Bad Credit Mortgages
Although as mentioned before having bad credit means that you pay a higher interest rate as you would have to get a bad credit mortgage. However it does help you with your credit problems.
Usually when people have bad credit they have debts on their name which need to be cleared up taking out a bad credit mortgage helps in a big way you can consolidate all your debts and monthly payments into one, allows you to have a low monthly payment. This is not to say that you will be paying more interest in the long run. Speak to one of our mortgage brokers for more information.
Adverse Credit mortgage
Bad credit mortgages is just another word for adverse credit mortgages it basically means you have bad credit or adverse credit depends on which way you wan to look at it. When buying a home most people need a mortgage and there are various mortgage lenders that you could go to, however, some lenders don’t accept mortgage applications from people who have adverse credit. They like the clients with clean credit clients who have perfect credit scores and adequate deposits.
Problems with credit can happen to everyone and lots of people in the UK have bad credit the reason you get bad credit is because you may have defaulted on a loan or have a county court judgement registered or being a discharged bankrupt there are mortgage lenders that will help and lend to these people.
Sometimes people end up having adverse credit due to no fault of their own, other times they are to blame for the adverse credit but no one when they move into a house wants it taken off them so they will make the repayments and mortgage companies acknowledge this and will lend to what is referred to as adverse credit mortgage. And adverse credit mortgages are now very competitive as there are so many lenders competing for the business.
Having adverse credit mortgage means that you will be charged higher fees and higher rates the companies that lend to adverse credit clients call the products sub prime or non-conforming. Adverse credit clients would have to go visit a mortgage broker you can go direct but it is best to speak to one of our specialist independent mortgage brokers.
Having a sub prime adverse credit bad mortgage means that over few years of paying the mortgage it would be possible to switch lenders to a conventional lenders. Saving your self money, as the mortgage interest rate is lower. Having adverse credit means you would have to pay more of a deposit typically 10% compared to 0% with conventional mortgages. Call one of our qualified mortgage brokers now.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
