Mortgage Vendor

Getting a mortgage, particularly if you have a history of bad credit can be difficult. The debt incurred by a mortgage is often the biggest single debt you will have throughout your life, and banks and building societies like to be sure that the money they are lending you, plus the interest, will be paid back.A bad credit mortgage is designed to help people with a blemish on the credit history ensure that they can get into or stay in the property market. Going direct to a bank or building society for your mortgage when you have had credit problems can be frustrating. Not all lenders will consider a bad credit mortgage for those who have had financial difficulties in the past – they like to deal with people with reliable jobs, good deposits and perfect credit histories. That’s why if you are unfortunate enough to be in this position, it is important to talk to a mortgage broker that specilises in mortgages for people with a bad credit history.

Unlike talking directly with a high street lender, most of which will be governed by criteria which wont allow for credit hiccups, these specialist mortgage brokers have access to the whole of the market meaning the choice of lenders and therefore suitable mortgage schemes on offer is substancialy increased. Mortgage brokers in this field are used to dealing with these types of problem mortgages, they have relationships with specialist lenders in this area of the market, they understand each lenders criteria for borrowing and if they are worth their salt, will know exactly how to present your particular case in the best light.

What is a bad credit mortgage?

Like all financial products, a bad credit mortgage may seem complicated at first. This type of mortgage can also be known as a credit-impaired mortgage, a non-standard mortgage, a subprime mortgage or an adverse credit mortgage. They are designed specifically for those people who have had credit problems in the past. Financial history that counts as bad credit includes:

• Bankruptcy
• Mortgage Arrears
• Non-payment of Rent
• County Court Judgements
• Individual Voluntary Arrangements
• Credit Card Arrears
• Self-Employment

In recent years, the number of people with debt problems and bad credit history has risen to the extent that one in four people in the UK would probably not qualify for a standard mortgage. This has increased the pressure on lenders to provide an alternative. As with any market, additional demand creates new supply, and consequently the range of bad credit mortgages available is greater today than it has ever been.

Would I qualify for an bad credit mortgage?

Mortgages are always approved on a case by case basis. That’s why it is in your interest to talk to a specialist mortgage broker. Whereas a bank or building society may only have one or two or maybe no suitable products for your needs, a broker has access to all the products on the market. They will be able to assess your current position and give advice on the likelihood of your qualifying for a bad credit mortgage, and give you illustrations that show which lender and mortgage schemes may best meet your needs.

Can I benefit from an bad credit mortgage?

Whilst it may be difficult to get approval for an bad credit mortgage, it can work well for you. For a start, you will be a homeowner on the property ladder. Secondly, although the mortgage interest rates may be slightly higher than standard, and there may be more restrictions applied to you, there may also be rewards for paying on time or for paying early. In addition, if you repay your bad credit mortgage in accordance with the lender’s requirements, then your credit history could be repaired three years afterwards.

Do I need bad credit mortgage advice?

If you have experienced difficulty getting a standard mortgage, and your credit history has been given as a reason for declining your application, then you should seek advice about obtaining an bad credit mortgage. The right advice, coupled with a pro-active attitude to managing your debt could set you on the right course for greater financial stability.

Mortgage Vendor Tips that will help you get the mortgage you require.

1) Make sure you can provide Proof of identity - driving licence - passport - utility bills

2) Make sure you are registered at your address on the electoral Roll

3) Check your Credit Report at Checkmyfile.com and see what lenders see for just £6.95. You can choose which of the three UK credit reference agencies you wish to search, or search all three with the Triple Agency Report.. Each report is set out for you in the same, easy to understand format so you won’t need an expert to decipher it.

4) When you have your credit file check for discrepancies, if there is something there which is incorrect get it removed from your file as soon a possible.

Tags:How to get a mortgage with a Bad Credit History

Tags: Bad Credit Mortgages