Title:
A Quick Guide To
Bad Credit Mortgages
Word Count:
354
Summary:
Trying to buy
your own home but can’t get a mortgage because of your bad credit rating? Stop
applying for regular mortgages now and start looking at the bad credit mortgage
market.
Traditional mortgage providers rarely offer their mortgage products to people
with bad credit. Why? Because if you’ve had trouble paying your bills, credit
cards or loans in the past, you’re a bad risk. Lending you tens or hundreds of
thousands of pounds could be a bad idea.
The recent increa...
Keywords:
bad credit
mortgage, bad credit remortgage
Article Body:
Trying to buy
your own home but can’t get a mortgage because of your bad credit rating? Stop
applying for regular mortgages now and start looking at the bad credit mortgage
market.
Traditional mortgage providers rarely offer their mortgage products to people
with bad credit. Why? Because if you’ve had trouble paying your bills, credit
cards or loans in the past, you’re a bad risk. Lending you tens or hundreds of
thousands of pounds could be a bad idea.
The recent increase in the number of people in this situation, however, has
meant that demand has risen for suitable mortgage products. The larger lenders
are still wary of bad credit risks, so it has fallen to more specialist lenders
to fill the gap in the market. Consequently, the bad credit mortgage market is
growing, and is competitive, which means that customers suffering from poor
credit can find a range of mortgage products that suit their needs and that
help them get their finances back on track.
So, what is a bad credit mortgage?
A bad credit mortgage is a financial product that’s specifically designed to
let you buy your own home even if you have a bad credit rating.
• Interest rates on these mortgages are typically marginally higher than for
traditional mortgages. This is because the risk to the lender is higher.
• There may be some additional conditions on your mortgage, which are placed
there to give security to the lender. These might include a larger arrangement
fee at the start of the mortgage, or stricter redemption penalties.
• These mortgages are usually only made available through specialist mortgage
advisors, who, in the UK, must be authorised by the Financial Services
Authority (FSA).
• A bad credit mortgage can help you to address your financial difficulties and
even to improve your credit rating over the long term.
Getting rejected by lenders for traditional mortgage products is something that
gets added to your credit history. Avoid this by speaking to an independent,
experienced mortgage advisor who can help you buy your house with a mortgage
that’s designed for people in your circumstances.