How to get a mortgage with bad credit rating
Mortgages for people with bad credit rating
It is estimated that as many as 1 in 5 people in Britain do not meet high street lending criteria and will experience difficulty getting a mortgage because of a poor credit rating. Are you one of them?
Many people struggle to pay bills and other commitments at some point during their lives, often in times of turmoil such as redundancy, bereavement or divorce. In some cases individuals can get a blackmark against their name, because they have been involved in a legitimate dispute over a bill.
If you have missed a payment (defaulted) on a previous mortgage, personal loan, hire purchase or credit card agreement or failed to pay a bill, your credit file may be adversely affected.
Most lenders will automatically run a credit check on anyone applying for a mortgage and something as minor as a missed payment on a book club could mean you have a poor credit score and cause your mortgage application to be declined.
If you have bad credit history such as CCJs. previous mortgage arrears, defaults on loans or credit cards, have been declared bankrupt or have no credit history, you may experience difficulty when applying for a mortgage with a high street lender.
If you have been turned down for a mortgage previously or feel that a standard high street lender may decline your application, all is not lost as there are a small number of specialist lenders who provide mortgage solutions for people who have experienced previous financial problems.
A professional mortgage advisor will be able to assist you as they'll know which lenders will be sympathetic to
your situation and will give you impartial advice on the best mortgages for people with poor credit scores.
See the compare mortgages section for a summary of some of the bad credit mortgages currently available in the UK. For details on these and other special offers / exclusive products, simply complete the enquiry form to get a FREE no obligation quote.
Sub prime market set to grow
British consumers have racked up a record personal debt mountain of more than Ј1 trillion. Industry experts believe a growing number of borrowers will be unable to cope with debts and as consequence will have their credit reports tarnished by late payments, defaults, county court judgements, IVAs and personal bankruptcy.
What is known as the sub prime mortgage market (industry phrase for people with bad credit rating) is expected to grow faster than that of conventional mortgages due to the rising number of people hitting financial difficulty.
Figures from Research company Datamonitor reveal that the gross value of lending in the poor credit mortgage market was Ј24.6 billion in 2006, however by 2009 this figure nosedived as lenders recoiled following the break out of the financial crisis. Sub prime mortgages were seen as being a fundamental contributing factor to the global economic catastrophe.
In recent times the appetite among lenders towards non standard borrowers has improved with one or two new lenders emerging offering a range of mortgages for borrowers with poor credit histories. Although the landscape is very much different compared to pre credit crunch, providing you are not an individual with habitual debt problems and have a good sized deposit as your disposal, help should be available.Source: findtheperfectmortgage.co.uk