Do Bad Credit Mortgages still exist?
It’s getting easier to obtain a mortgages when your credit file shows evidence of bad credit. Easier than it was a few years ago as more lenders come back to the market offering mortgages for a less than perfect credit score.
For many people repayments on their credit cards, mortgages and other types of borrowings are an essential and manageable part of life. Being able to borrow money lets you get what you need when you need without the need to save.
It’s a fine balancing act to meet repayments every month and still have enough left over to live. A change in circumstances can throw this off balance. It can be easy to find yourself in a position where the repayments start to outweigh other living expenses – you may feel that the only way to get enough money for the basics is to borrow more money through a loan or a remortgage.
There are people and companies who are experts in helping their clients get back on track – in our experience many of us find themselves in debt through no direct fault of their own. Often things such redundancy, illness or stressful events such as divorce or bereavement lead to people finding themselves with credit problems.
Once you have missed a mortgage payment it can be extremely difficult to get back on top of things – especially if you have other credit issues. A single missed payment is enough to create a bad credit score while more serious arrears will inevitably lead to potential repossession proceedings.
Similarly, when other creditors seek settlement on their bills due to non-payment, you could evens find yourself with County Court Judgements against you.
The bottom line is that CCJs, mortgage arrears and other debt problems can quickly lead to a bad credit score – and once you have a bad credit score you will find it extremely difficult to borrow further money.
Even if you have cleared you debt and are now financially secure it could be extremely difficult to remortgage your house with evidence of a adverse credit history.
The good news is that there is help available through Open Mortgages.
Most mortgage lenders specialise in what are called “prime” borrowers – that means they won’t start to consider applications from those with a bad credit history. Essentially that makes it extremely unlikely that a direct application to a High St lender will be successful. But not until they have searched your credit file and left evidence of that search.
However there are mortgages for people with a bad credit history. These are called mortgages for bad credit. Even if you’ve been turned down elsewhere, the chances are you can be helped if you speak to the right people.
For starters, the specialist lenders have a great deal of experience with customers with bad credit history – they know the stress it can cause and the impact it can have on your life. Whether you’re trying to get on the housing ladder for the first time or attempting to remortgage your home in order to clear your debt problems, they work to help you find a mortgage that will suit your needs.
Remortgage brokers work with a large panel of lenders who offer highly competitive rates and terms for those who need to remortgage with adverse credit history. Working with these lenders they’re able to create a package that suits your needs and can help you alleviate the debt situation almost immediately.