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busterAdverse credit mortgages are designed for people who do not qualify for a mainstream mortgage. There may be a number of situations in which an adverse credit mortgage could be recommended. For example you could have a bad credit rating due to the following circumstances:
- Mortgage, secured loan and rent arrears
- County Court judgments
- Defaults
- Individual voluntary arrangements
- Discharged as bankrupt
- Repossession
It is best to talk to an adviser about your circumstances and they can recommend a suitable product for you. Contact us.
You should be aware that a higher rate of interest will be payable for an adverse credit mortgage. This is due to the element of risk that the borrower may fall behind with their payments.
Your credit rating will improve if you pay off your debts regularly and do not miss payments. Some lenders offer specific ‘credit repair’ products, where the interest rate improves the longer you make regular payments. If you are able to demonstrate that you are able to make regular payments for several years you may be able to remortgage on to a mortgage with a better interest rate.
Please remember that you are responsible for paying back your mortgage and your home can be repossessed if you do not pay.
If you are in any difficulties and need advice you can contact the national debtline 0808 808 4000 or the Citizens Advice Bureau.
