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Adverse Credit Mortgages
Welcome to the Finance Search guide for Adverse Credit Mortgages, here we can help you find a mortgage
even if you have adverse credit and have been refused a mortgage from other lenders. Read on to find out more about Adverse
Credit Mortgages.
What exactly is adverse credit and how does it affect mortgages?
Adverse credit is bad credit which means that at some time in the past you
have slipped up with the payment of credit or a bill and this appears on your credit record. When you
apply for a mortgage, an adverse credit record will affect your application. The lender will find out
about your credit record by accessing the information held about you by a Credit Reference Agency.
Credit information about all of us is held by Credit Reference Agencies. This includes public information
such as electoral roll entries together with credit account information including payment records for credit
cards, loans, mortgages or hire purchase and any County Court Judgements registered against you.
Got a bad credit record? Need an Adverse Credit Mortgage? Click here to apply for an Adverse Credit Mortgage.
Fixing Adverse Credit
If you have had a mortgage application refused because of information on a Credit Reference Agency’s records
you can ask which agency the lender used and then get a copy of your record from the agency – you will have to
pay a fee for this. You can ask for your record to be corrected if it is incorrect or misleading. The most commonly
used agencies are Experion Ltd and Equifax plc.
Types of Adverse Credit
Some forms of adverse credit have a more serious effect than others on your ability to get a mortgage. The following is a brief explanation of
the principal types of adverse credit. Remember even if you do have adverse credit you can still apply for an Adverse Credit Mortgage.
- Default
Payment has not been made within a period of 30 days after the payment was due, for instance on a credit card, hire purchase
or mortgage agreement. You may be unaware of a default being registered if you have made a late payment.
Had a default registered against you? Want a mortgage? Apply for an Adverse Credit Mortgage now.
- County Court Judgement
If you have not made payment on a debt then you will be taken to Court. If the debt isn't satisfied (paid) then a judgement will be made against you in the County Court and will be registered on your credit file as a CCJ. If the debt is paid you should obtain a satisfaction certificate and your credit file will show that the judgement is satisfied. The CCJ, however, will remain on your credit file.
CCJs or worse? You can still get a mortgage. Apply now.
- Black Listed
If you have a very bad credit history, your record may be placed on a separate black list, used by some lenders, to denote a severe credit risk.
- Individual Voluntary Arrangement IVA
Under an IVA, a debtor comes to an agreement with creditors about the way in which their debts will be settled. It is an alternative to Bankruptcy,
which does not carry the stigma or financial restrictions of bankruptcy.
- Bankruptcy
An individual debtor (not a limited company) has an order made against them under the
Insolvency Act 1986, which signifies that they are unable to pay their debts. They are deprived of their property,
which is distributed amongst their creditors. Bankruptcy severely restricts the individual’s financial freedom.
Discharge from bankruptcy occurs after a fixed period, normally three years although it remains on your credit
record for at least fifteen years.
Find out about the best deals for borrowers with adverse credit. Apply now.
A poor credit history can affect your chances of getting a mortgage. However, that doesn’t mean you should risk bodily injury if you miss a payment, or have to pay interest
at a rate so high that you feel you are paying off the British National Debt. There are good lenders who
specialise in the area. They use expertise built up over many years to devise schemes offering good value
to the borrower together with reward to the lender for the additional risk they are taking.
In fact, a good adverse credit mortgage lender can dramatically improve your quality of life if you are
struggling to build up a good credit record after a period of financial difficulty, or you have been turned
down for a mortgage by a “mainstream” lender.
Loans are typically available up to 90% of purchase price or valuation (less for more severe levels of adverse credit) at interest rates as little as 1% above standard mortgage rates. Income multiples are also in line with mainstream lending.
For Adverse Credit Mortgages, the full range of mortgages is available including house purchase, re-mortgage and even buy-to-let.
Sounds good?Apply for an Adverse Credit Mortgage now.
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