Mortgages and Remortgages for bad credit
A bad credit mortgage or bad credit remortgage is the common term most people use to
describe what lenders call 'impaired credit', 'adverse credit', 'sub prime' or 'non status' mortgages
or remortgages. Between
them, they account for a large section of the mortgage / remortgage market.
It is estimated that one in four people in the UK would be turned
down by a mainstream mortgage lender. This is because not everybody
fits the standard criteria lenders apply. But don’t worry if you are
one such customer, help is at hand.
These days there are around a dozen bad credit mortgage lenders who
cater for individual cases. Most are
owned by mainstream banks and building societies. All of them offer
viable mortgage alternatives for those prospective borrowers who may
not fit the standard criteria.
About you and your credit history
Credit reference agencies log information about your credit
payments to various agencies, the two largest in the UK are Experian
and Equifax. They hold data about you for up to 6 years. You can
obtain copies of this data by writing to them or online.
- Equifax
Plc
Equifax Credit File Advice Centre
PO Box 1140
Bradford
BD1 5US
Providers of credit will reference these agencies to decide whether
or not you are a good credit risk and they will base their lending
decision on the information returned to them. Most mortgage lenders
will decline a mortgage if an applicant has arrears of 3 months or
more on any credit agreement.
Some lenders specialise in lending to people with bad credit. They
will lend to anyone except a bankrupt but the interest rate they
charge will depend on how bad the credit is. You may also have to pay
more in fees and have a bigger deposit.
Always disclose to a mortgage lender or remortgage lender details of any adverse credit against
you. The mortgage lender will find out when they do your credit search and if
you have not told them then this is called non-disclosure and it will
count against you.
A better choice of mortgages for bad credit
It used to be the case that if you didn't have a perfect credit
history you couldn't get a mortgage from a high street lender or
remortgage lender. But now
the lending market has become so diverse that there are products to
fit every credit profile.
Today's borrowers can choose from a large number of special
products that are aimed specifically at those people with some form of
bad credit. These mortgages do not differ vastly from other mainstream
mortgages, take a look at some of the
cheap
mortgage rates currently on offer. There are however certain key
differences between adverse credit mortgages and the usual products
offered by lenders.
Why switch your mortgage?
In today’s competitive market, many borrowers choose to switch their
mortgage every few years in order to take advantage of the new rates
on offer. However, a remortgage also allows you to release the equity
that has accumulated over the years. Equity is the difference between
your current mortgage and your property's value.
Remortgage to Clear Debts
If you consider how house prices have increased in recent years, this
could be a substantial sum. The extra cash you release could be used
for any purpose such as debt consolidation ( clear debts ), a wedding or your child’s
university costs. It might even be enough for you to consider buying
another property to rent out or a dream holiday home.
Current or past mortgage arrears, CCJ's or defaults?
We understand that for no fault of their own some clients fall behind
making their mortgage payments or may have County Court Judgements (CCJ's) and defaults
registered against them. Normally this is for reasons beyond their
control. Maybe their overtime was cut at work. Or a customer paid them
late.
We also know that if you have mortgage arrears, CCJ's or defaults most
bank's computer systems will automatically reject your remortgage
application because you do not fit their preset lending criteria.
Our advisors treat each client as an individual. We do not rely on
inflexible computer systems to assess your application. We want to
help you get back on the straight and narrow.
You will find that you will be able to clear any existing mortgage
arrears, CCJ's or defaults direct from your new mortgage. You can then
wipe the slate clean clear debts and use your new mortgage to start to rebuild
your credit rating.
So why use Best Buy Mortgages?
For most people using our services is a win-win situation. Firstly,
you've got an expert
looking after your interests, subsequently a better mortgage deal can
normally be offered.
Why not make your life a lot easier and ask Best Buy Mortgages to help
you find the best remortgage for your needs. You will deal with a
fully CeMAP qualified mortgage professional working
for you to find the best mortgage for your individual needs.
Your advisor will do their utmost to keep you fully informed on
progress and we also unconditionally offer the following guarantees:
- You are under no obligation whatsoever
- All quotes are free
- No salesmen will call at your home
- You can cancel at any time up to completion
- If you cancel, there are no costs or penalties
How to get your free mortgage quote from Best Buy Mortgages
It will only take a few minutes of your time today but
could save you thousands of pounds in interest payments and will
eliminate any worries you may have about getting the best mortgage deal
possible.
You just need to enter some basic information into our secure
online mortgage enquiry form and we will present
you with illustrations of the best mortgage deals we have available.
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