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.

POST COMMENT

Payday Loans For Bad Credit Borrowers Loans For Bad Credit - Rebuild Their Credit Score With Ease Pitfall Of Debts With Bad Credit Tenant Loans Handling a Bad Credit Personal Loan. Follow Our Guide! No Credit Check Personal Loans: Finance Despite Bad Credit Unsecured Loans For People With Bad Credit - Approval Without Security How To Improve Your Credit History With Adverse Credit Secured Loans Personal Debt Relief - How To Manage And Eliminate Credit Card Debt Settle Credit Card Debt - Ways To Make Creditors Settle Your Debt For Less Everything You Should Know About Bad Credit Loan Mortgage No Credit Check Loans Easy, Reliable And Customized Funds Disposal At Your End Credit Card Debt Help – Realistic Ways To Get Out Of Credit Card Debt Debt Relief – How To Take Control Of Your Credit Card Debt