Bad Credit Mortgage Arrears Loan

Bad Credit Mortgage Arrears Loan



Bad Credit Mortgage Arrears Loan
Securing a​ mortgage when you​ have a​ bad credit history is​ not easy .​
It is​ estimated that some 25% of​ all mortgage applicants do not fit the​ profile of​ conventional mortgage loan companies,​ most of​ which tend to​ base their decision on​ whether to​ grant you​ a​ mortgage or​ not on​ what they see in​ your credit file .​
If you've ever defaulted on​ loans payments,​ have CCJs against your name or​ if​ you've filed for bankruptcy then it​ will show in​ your credit file,​ and go a​ long way towards deterring loans companies from offering you​ a​ mortgage.
For mortgage applicants who experience trouble obtaining a​ mortgage,​ or​ any other sort of​ credit for that matter,​ there is​ help available .​
Specialist mortgage loan providers offer a​ variety of​ loans that cater specifically for the​ 25% of​ applicants that have tried and failed to​ secure a​ mortgage through mainstream lenders .​
These loans include bad credit mortgage loans and self-certification mortgages,​ the​ latter of​ which provide the​ self-employed with a​ route to​ obtaining a​ mortgage.
The Ins and Outs of​ bad credit mortgage arrears loan
Bad credit mortgage loans,​ which are also known variously as​ adverse mortgage loans or​ credit repair mortgage loans,​ are designed to​ give those with a​ bad credit record the​ best opportunity to​ obtain a​ mortgage .​
Providers of​ bad credit mortgage loans tend to​ look at​ additional criteria other than your credit history when considering whether to​ grant you​ a​ mortgage or​ not .​
These other criteria vary between provider,​ and will also vary on​ a​ case-by-case basis,​ depending upon the​ source of​ your bad credit history.
Bad credit mortgage loans are generally offered at​ high interest rates .​
Typically,​ a​ variable rate bad credit mortgage product will be some 2% to​ 4% higher than the​ base interest rate,​ with the​ most severe bad credit cases being awarded mortgages at​ the​ high end of​ the​ rates scale .​
Additionally,​ applicants will be expected to​ lay down a​ larger deposit than on​ a​ conventional mortgage product .​
Mortgage loans providers dealing in​ bad credit mortgages are rarely willing to​ extend credit for more than 75% of​ the​ property valuation .​
If you​ can put up with these restrictions and the​ fact that mortgage lenders will only offer a​ total loan sum of​ 2 or​ 2.5 times your income,​ then a​ bad credit mortgage arrears loan is​ a​ good thing .​
Not only will you​ be able to​ climb the​ proverbial property ladder,​ but,​ providing you​ keep up the​ repayments,​ you'll also be well on​ the​ road to​ establishing a​ good credit history.




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