bad credit mortgages
These are mortgages for people who have unfortunately had financial difficulties in the past and have been unable to keep up repayments on credit commitments. Normally, all this means is if you do qualify for this type of mortgage then
1. The interest rates are normally higher and
2. You generally need a higher deposit than most other lenders
Certain stipulations do apply so best to Get in Touch first to see if you can potentially apply for one of these mortgage
Bad Credit or Sub-prime mortgages Q&As
There are several lenders who offer mortgages for customers with bad credit. Which one you can use does depend on lots of things like what bad credit you have. Some lenders you can use are Kensington mortgage Company, Aldermore, Precise mortgage and Magellan Home Loans. They all charges differing rates and fees etc and their criteria is very different from lender to lender. There are even a few mortgage lenders who can help people who have had bad credit in the past.
Our mortgage experts can help you choose the cheapest rate possible given your circumstances
Bad credit mortgages are mortgages for people who have had or current have bad credit. Bad credit can mean a whole host of things like missed payments on credit cards, loans or mortgages. It could be for people who have County Court Judgements (CCJs, Defaults, Debt Management Plans, IVAs, Bankruptcies or even have been repossessed by a lender in the past.
The lenders who offer mortgages to people with these credit problems will:
1. Charge you a higher interest rate than other banks or building societies and
2. Need you to have a bigger deposit or more equity in the property you are buying or remortgaging
3. In most cases the lender will ask you to use an Independent mortgage adviser
Why not contact one of our mortgage experts to see if you are eligible?
Bad mortgage rates are very similar to normal interest rates from most lenders. They are higher rates but what we mean is you can get fixed rate and variable rate or tracker rate mortgages from these lenders and they are explained below
The rates available to these customers are:
1. Fixed rate mortgage – these are rates which are fixed for a given period typically 2, 3 or 5 years. In most cases 2-year fixed rates are lower than 3 years fixed and obviously the 5-year fixed rates are the highest.
2. Variable rates – these rates are set by the lenders themselves and they can vary as and when the lender s=feels it wishes to increase or lower the rate
3. LIBOR tracker rates – LIBOR (the London Inter Banking Offer Rate is the rate at which the banks charge each other to borrow money. It is reviewed every 3 months and can up or down. If your rate tracks this rate and the rate goes up, then your rate and monthly payment will increase as well. If the rate goes down, then your mortgage interest rate and your monthly payment will also go down
Yes. In most cases, if you are married, most lenders will ask you both to be on the mortgage application and buy or remortgage the property in both names.
You can get mortgages of you have had bad credit in the past or indeed have bad credit now.
Normally it means you need a larger deposit if you are buying a home or if you wish to remortgage it means you need to have a certain amount of equity in your property.
The mortgage lenders who lend in this area are called “sub-prime” or “adverse” lenders and they will charge you higher rates than what high street banks or building societies will charge you.
In almost every case you will need to speak with an Independent mortgage adviser to arrange this mortgage for you because many of these lenders do not deal with the public directly.
The amount rate charged will be dependent on how bad your credit is. For example, the worse your credit the more deposit you need and the higher the interest rate charged.
These lenders will not be able to help people in all instances so please get in touch with one of our experts to see if you qualify.