A Bad Credit History Needn't be a Barrier to Obtaining a Mortgage
Over the past few years, an increasing number of mortgage brokers and lenders have began to specialise in offering financial services to people who have unfortunately found themselves with a bad credit history. This is down to the fact that people with a bad credit history have to pay higher interest charges on their borrowings than someone who has a clean credit history.
Unfortunately, people can find themselves with a bad credit history for several reasons: loss of a job, long-term illness and even the breakdown of a marriage can all be cited as reasons for someone having a bad credit rating, and finding financial products to suit can be a difficult task. A recent report claimed that people with bad credit history account for almost 40 percent of the mortgage market, but unfortunately many find that most High-street banks and building societies refuse mortgage applications from people with adverse credit registered against them.
However, if you are one of those people who suffer from a less-than-perfect credit history, it is still possible to obtain a mortgage through a specialist lender. Lenders who operate in this market are commonly known as ‘sub-prime' and the market for offering this type of mortgage has grown considerably, spear-headed mainly by American financial institutions. It might seem strange to think about, but mortgages are, in fact, one of the easiest forms of finance to arrange for people who have bad credit - due to the fact that your home provides a high level of security for the lender. It is important, therefore, to keep up your repayments otherwise the lender could repossess your home.
Specialist mortgage lenders can accept applications from people who have credit arrears, defaults and CCJs - even those that are owned by debt recovery agencies, such as Capquest. In fact, specialist lenders will consider most circumstances and in some cases, mortgages can even be arranged for discharged bankruptcies.
Approximately 1 in 4 mortgages in the UK today is classed as a sub-prime mortgage, but borrowers should be aware that if they keep up their payments on a sub-prime mortgage, they will be well on their way to generating a good credit history with the result that it might be possible to re-mortgage to a lender offering a lower interest rate.
With an ever-growing choice of mortgage options available to those with bad credit, it is important to research the market carefully in order to find the best deals available on bad credit mortgages. There are a number of price comparison websites which can provide information on the different types of financial products available and help to make an informed decision on the right choice of bad credit mortgage to suit your circumstances.
Related Tags: credit, arrears, defaults, credit history, adverse credit, bad credit mortgages, mortgage lenders, ccj, sub-prime mortgages
Capquest Debt Recovery are members of the Credit Services Association.Your Article Search Directory : Find in Articles
Recent articles in this category:
- Understand The Fha Guidelines Before Considering Fha Mortgage
The U.S. economy was hit hard by the global financial meltdown. In the housing sector, the crisis is
- Basic Facts About Multifamily Apartment Construction Loans
When you make an investment, you surely think of getting something out of it to make the deal profit
- Commercial Mortgage Refinance Loan - Ideal Solution For Financial Problems
Financial security is something which we have to plan from before. In life, there is no certainty wh
- Free Government Grant Money Eligibility Requirements
All of us hear about free government grant money. But what is involved in obtaining this money? What
- Top 10 Tips On Buy To Let Mortgages And Property Hunting
If you are looking for an opportunity to invest your savings or any money you have come into, there
- A Few Tips On How To Stop Foreclosure
In case you are facing certain financial catastrophe caused by a loss or relocation of a job, or wha
- How To Stop Foreclosure And Lose Your Residence To The Bank
In today's market, there are more and more citizens that get big loans then they use their home as a
- Most Excellent Way To Stop Foreclosure - The #1 Blueprint For Saving Your Home
Just what is the best measure to stop foreclosure? No doubt you are browsing for an answer to that q
- Act Fast To Stop Foreclosure
If you would like to find out how you can put a stop to foreclosure, there is not much to accomplish
- Tips For Buying A Home With No Money
There is a popular belief that you can only buy a home if you have great credit. This is false becau
Most viewed articles in this category:
- Mortgage Refinancing - Rate Caps Protect You When Refinancing With an Adjustable Rate Mortgage
Adjustable Rate Mortgages can save you money when mortgage refinancing if you fully understand how t
- 100% Mortgage Loans: What You Need to Know
Coming up with a 20% down payment can be a difficult task for many potential homebuyers. If you are
- Home Equity Loan Pitfalls
The home equity loan came of age in 1996 when changes in the tax law eliminated deductions for the i
- Mortgage Refinancing: How the Fannie Mae Weekly Yield can Help You Comparison Shop
Mortgage refinancing without knowing Fannie Mae's weekly yield is like buying a used car without kno
- How to Pay Off Your Mortgage in 7 Years, Without Extra Payments
One of the most exciting new topics concerning wealth is “How to Pay Off Your Mortgage in
- Mortgage Rate Comparison
Trying to get an "apples to apples" mortgage rate comparison can often be quite a hassle. Traditiona
- Should I Pay Off My Mortgage Early?
Many people think that real estate debt is good debt. They think that their mortgage is their bigges
- Mortgage Refinancing: Beware the Mortgage Vultures
If you are in the process of mortgage refinancing you need to be wary of overpaying for your loan.
- Mortage Loans - How Much Does It Actually Cost In The End
Mortgage loans are the loans used to finance most people's first home. It is the big loan that ever
- Where To Locate Home Improvement Loan Companies
Where to locate home improvement companies is a question that arises from many different people. Som