Bad Credit Mortgages Guides

Guide – Bad Credit Mortgages

A person's financial status can change very quickly. Loss of a job, divorce, or a failed business venture can lead to a spiral of debt that can effect their credit rating. Even if you have found your feet after getting into debt, your credit history may effect your ability to take out a mortgage now and in the future. You are not alone, around one in four people in the UK are turned down for a high-street mortgage based on their credit history.

Many of the high street mortgage lenders now have bad credit lending departments to help house buyers with poor credit history take out mortgages. It is worth shopping around for the best mortgage to suit your circumstances as there is a wide variety of deals out there.

Like standard high street mortgages, bad credit mortgages can take many forms, so it is important to understand the choices you will be asked to make. For example, with a bad credit mortgage, you will be liable to pay higher rates of interest to allow the bank to cover the higher risk of default. If you make your repayments on time, you may be able to revert to a standard rate mortgage after a set period, or refinance your existing deal.

Remember that your circumstances may change - for better or for worse, so you need a mortgage broker that is can respond to your current - and future - needs.

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