Money Outlet

If you are in the market to obtain your first mortgage, or to remortgage, and have suffered bad credit in the past, then most likely your credit score will be adverse. Although it’s not quite as easy as getting a mortgage with a good or excellent credit rating, this does not mean it’s obtaining a bad credit mortgage is very difficult or impossible. It is quite the opposite in fact. However, there are some key points to consider when approaching lenders with an adverse credit history.

Find the best deals if you have adverse credit

Here at the MoneyOutlet we work in a large nationwide network of UK mortgage brokers with access to over 8,000 mortgage products including adverse and bad credit mortgages. Applying is easy, free and there’s no obligation. You’ll receive a key-facts illustration to guide you in finding the best mortgage to suit your needs. Apply Now on the fast form above.

Often, people will obtain a bad credit history due to uncontrollable events. Employment redundancy or other unforeseen factors may have led to mortgage arrears, having a CCJ (County Court Judgement) filed against them, missed credit card payments, filed for an IVA or even bankruptcy. All of these situations will affect your credit to varying degrees thus leaving the only option a bad credit problem mortgage when looking to buy a home.

Bad credit mortgages are also referred to by lenders as:

• Adverse credit mortgage
• Poor credit mortgage
• Sub-prime mortgage
• Non-status mortgage
• Non-conforming mortgage
• Credit-averse mortgage
• Credit problem mortgage

Despite the many titles given by lenders, there are a number of providers who are sympathetic to those who have had credit problems in the past. Yes, you can still obtain a mortgage, however, there are a few key points to think about when pursuing a subprime mortgage.

Bad Credit Mortgages – The Pros?

• Banks and Building Societies: With many lenders accepting that just because one has had bad credit in the past does not mean they don’t qualify to borrow. Thus, more lenders have widened their product range to cater to the adverse credit market.
• Specialty Lenders: Dedicated lenders offering their services particularly to the sub-prime market. They help 1000’s of would-be homeowner access adverse credit mortgage products.
• Certified Mortgage Brokers: FSA regulated mortgage brokers have access to what’s called the ‘Whole of Market’. Working directly with a mortgage broker is recommended to help you locate the best deals quickly and according to your financial circumstances.

So, it’s very possible to obtain a bad credit mortgage. There are also different levels of bad credit. For example:

• Light adverse credit: No bankruptcy, small number of missed payments on secured and/or unsecured debts, CCJs less than £2000.
• Medium adverse credit: No bankruptcy, 6 to 11 missed payments on secured and/or unsecured debts, CCJs less than £5000.
• Heavy adverse credit: Bankruptcy, filing for an IVA, 12 or more missed payments on loans or other credit products, CCJs over £5000 (source: CML)

Bad Credit Mortgages – The Cons?

• Higher Rates: Once lenders determine which category (according to their specific criteria) your credit falls under, they will offer higher rates for a bad credit mortgage based upon their risk assessment.
• Deposit: It’s possible that some lenders require you come up with a higher down payment therefore borrow less according to the LTV (Loan to Value ratio). 100% mortgages may be difficult to find but 90% mortgages requiring only 10% deposit will be readily available.
• Locating an Affordable Mortgage: You may come across a few stumbling blocks in the beginning because either your particular bank doesn’t lend to those with adverse credit, especially heavy or severe bad credit, or you may discover rates are simply too high or not affordable. (Working with a regulated, independent mortgage broker is highly recommended)

Here at the MoneyOutlet we work with a vast network of independent UK mortgage brokers with special access to banks, building societies, and bad credit mortgage lenders. If you suffer from bad credit, CCJ’s, mortgage arrears or filed for bankruptcy or an IVA, we can help you now!

We cater to all credit types and will connect you with CeMAP certified brokers eager to help you find the best mortgage for your needs. You safely and securely provide your requirements in the form above and we immediately begin searching 1000’s of cheap bad credit mortgages based on your financial circumstances. You’ll receive your free, no obligation quote without a credit check (important!).

Why not see how we can help you today? Use www.moneyoutlet.co.uk to search and compare online and help find you the best available mortgage loans in today’s market no matter your credit status.