Adverse
Credit Mortgage
What is an adverse credit mortgage ?
An adverse credit mortgage is also known by the following
names. They all refer to the same basic type of mortgage,
namely one where the applicant has a history of bad credit.
- Non status
mortgage
- Bad credit
mortgage
- sub prime
mortgage
- Non standard
mortgage
- Poor credit
mortgage
- Credit impaired
mortgage
As you can see there are many different names for it. For the purposes
of this website it will be refered to as an adverse credit mortgage
because that is the term most people use to describe it.
Do you need to apply for a mortgage via sub prime lenders ?
Adverse credit mortgages are for people who have an adverse credit
history.An adverse credit history could include:
- County Court
Judgements (CCJ's)
- Mortgage
or rent arrears
- Self employed
- Although you can apply for a self certificate mortgage
- Decrees (Scotland)
- Bankruptcy
- I.V.A
- Trust deeds
Mortgage lenders may also turn you down if you have changed address
many times or if you are an entrepreneur without 3 years worth of
audited accounts. Self-employed borrowers may have to apply for
a mortgage via sub prime lenders but may also apply for self-certificate
mortgages, meaning they declare their earnings without having a
set guaranteed salary.
It is estimated that one in four British
people would not qualify for a standard mortgage from a
high street lender. This means they require sub prime lenders
in order to acquire a mortgage loan. As with any product,
if there is a demand then supply will follow, and as the
demand for adverse credit mortgages has risen, so too has
the number of lenders catering for this need, and there
are many sub prime lenders across the UK and also some mainstream
lenders who consider lending to people with an adverse credit
history.
Pro's and con's of an adverse credit mortgage
Lending money is all about risk. A bank will weigh up the risk
factor of lending money to an individual and decide whether they
are likely to get their money back with interest without too much
hassle. Therefore some lenders will simply not lend to high-risk
category borrowers, others will but will adjust their interest rates
accordingly. This means you may have to pay higher interest rates
on your mortgage. On the positive side you get a home to live in
that belongs to you, and if you repay you mortgage back as required
by the lender, after three years your credit history will have benefited
considerably.
Climbing the ladder to owning your own home debt free
This means that after three years you could remortgage (switch
mortgage lenders) to a high street lender and enjoy massive savings
on discount interest rates. It's all about climbing the ladder from
adverse credit history and no property at the bottom to positive
credit history and ownership of property at the top.
We specialise in adverse credit mortgages and
remortgages and you can apply online here for free with no obligation
to complete the
deal.
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