Bad Credit Mortgages

The sub-prime or bad credit mortgage industry has gone through changes over the last few years. Until recently there was a much broader product range which was more competitively priced, providing relatively attractive deals. However over the last 12 months the market has changed again and lenders have become more wary about lending to customers with less than a perfect credit history.

Trying to get a mortgage with a poor credit rating can be a frustrating experience. But there may be mortgage deals out there that could be right for you. Some lenders offer what are known as credit repair deals. You will pay a higher interest rate than you would with a conventional mortgage and a sizeable deposit would be required. The benefit being that once you have maintained your payments on one of these deals for an agreed period, your credit history would be improved leaving you to remortgage back on to a high street deal and enjoy a more competitive interest rate.

If in doubt talk to an independent financial advisor, make sure everything is explained to you so you don’t have any doubts when making your decision.

The number of lenders willing to provide remortgages and mortgages for people with bad credit status is decreasing. The lenders who will help people with CCJs, defaults, mortgage arrears, discharged bankrupts and individuals with a poor credit score or bad credit rating are very few.

A Bad credit mortgage is used when a person has previously had poor credit status. If a person has previously filed for bankruptcy, failed to pay back loans or have received court judgements for unpaid debts, these people as a result would have a poor credit rating.

Taking out a mortgage or remortgaging does have significant benefits as it could allow you to consolidate your debt, pay off any outstanding loans or generate capital for home improvements or buying car.

There is a wide range of choice available as to which mortgage would be right for you from the discount, tracker, fixed and flexible bad credit mortgage.

Once you have obtained your mortgage your credit history will improve. By keeping up payments for a period of time you will in the near future be entitled to re-mortgage to a standard mortgage giving you more options.The sub-prime or bad credit mortgage industry has gone through changes over the last few years. Until recently there was a much broader product range which was more competitively priced, providing relatively attractive deals. However over the last 12 months the market has changed again and lenders have become more wary about lending to customers with less than a perfect credit history.

Trying to get a mortgage with a poor credit rating can be a frustrating experience. But there may be mortgage deals out there that could be right for you. Some lenders offer what are known as credit repair deals. You will pay a higher interest rate than you would with a conventional mortgage and a sizeable deposit would be required. The benefit being that once you have maintained your payments on one of these deals for an agreed period, your credit history would be improved leaving you to remortgage back on to a high street deal and enjoy a more competitive interest rate.

If in doubt talk to an independent financial advisor, make sure everything is explained to you so you don’t have any doubts when making your decision.

Deciding on the right mortgage is for most people the biggest financial decision they will make.

This service offers you access to a full range of mortgages and re-mortgage products (UK only).

Getting the right mortgage for you is essential. Making sure your repayments are competitively low and that you don’t pay over the odds for your mortgage is most important.

First time buyers and homeowners using Choice Mortgages should consider how much the product costs to arrange, any early repayment costs, the initial rate and the APR before making your final decision.

Please note if you do not keep up payments on your mortgage your house could be repossessed. Not all mortgages are regulated by the Financial Services Authority.