Bad Credit Mortgages

Whether you’re taking out a mortgage or applying for a bank loan, you can quickly get used to lenders saying “yes.” When times are good, it seems most banks will fall over themselves to tie you into the latest gravity defying interest rates (seemingly lower than the lowest rates known to man!) They’ll wine and dine you and give you all the help you need - unless of course, you’ve got a bad credit rating. As soon as poor and / or adverse credit ratings rear their heads, lenders suddenly seem less inclined to say “yes” and rather more likely to say “on yer bike!”

If you’ve got an adverse credit rating and you’ve ever tried to shop around for a mortgage, then you’ll know how difficult it can be. Any mention of an unpaid debt or the merest whiff off a County Court Judgement tends to send mortgage advisors ducking for cover. But you needn’t worry; it doesn’t matter if its bad credit, non credit, non status or sub prime, you can get a mortgage.

First thing’s first: what’s all the fuss over a bad credit rating anyway? Isn’t it true that as a nation we’re spiralling deeper into debt? Isn’t it the case that around 25% of us have an imperfect credit rating anyway? So why aren’t lenders cottoning on to this huge untapped market for their services? They are – it’s just taking them a little time to get up to speed! Mortgages are finally changing to reflect the changes in our buying and spending patterns. They’re more finely tuned into our lifestyles than ever before. That means that whoever you are, and whatever your status, you should be entitled to the same range of services as everyone else. That means if you want a mortgage, you can get one. Let’s find out how…

In the past, bad credit applicants have been seen as a big risk. It’s been supposed that a poor credit rating equates to poor financial acumen. Even in spite of the fact that it’s about as easy to pick up a poor credit rating as it is to pick up a parking ticket. (And bear in mind, lenders don’t even need to tell you why they’ve rejected your application!) But these days, we’re all seen as one big opportunity, whatever our credit rating! Mortgage lenders are willing to overlook the negligible risks in favour of cashing in on slightly higher rate payments for your mortgage. Rates will depend on your individual circumstances – so you won’t ever have to pay way over the odds just because you slipped into debt and forgot a store card payment one Christmas.

So, bottom line: you’re probably going to wind up paying a little bit more for your mortgage because of your bad credit rating. But let’s consider the advantages. First and foremost: you’ll be on the ladder! Getting onto the property ladder is in itself the first stage in many people’s rehabilitation of their bad credit status. Stick to the agreed payments and by the time you’re celebrating your third anniversary as a home owner you can be struck off the adverse credit rate lists altogether. Better yet, because you’ll no longer be seen as a high risk debtor, you can take the opportunity to re-mortgage to better competitive advantage. You’ll be quids in.

Sounds good eh? So how do you go about finding a lender who’s willing to work with you? It’s surprisingly easy. Even the big banks are beginning to get wise to the bad credit industry. More and more lenders are coming up with more and more ways for you to get that mortgage – and you can find your first contacts right here on this site. You might want to contact bad credit brokers who will take care of the hard work of contacting lenders and comparing prices for you. Or you might want to go straight to the lenders and find out for yourself. Either way, this is your opportunity to say “yes,” “no” or “on yer bike to them!”

The important thing is that your bad credit rating isn’t the millstone it once was. Even if you’ve been compromised by bad debt for years and years, you don’t have to compromise any more.