How can I get a Mortgage if I have Adverse Credit?

No matter what your credit history is like, you should be able to get a mortgage. An Adverse Credit (or Bad Credit) mortgage isn’t hard to get but you will need to take some professional advice (something about Heron here) so that you get the best deal. Some lenders charge higher interest rates for adverse credit mortgages or attach severe penalties. If you already have financial problems you need to make sure you get the best product for you needs.

Adverse credit mortgages are known by many names, depending on the lender. They can be known as non-conforming or sub-prime mortgages. You may also hear them called credit impaired mortgages, a non-status mortgage, a bad credit mortgage or non standard mortgage. Whatever they are called they all indicate the same kind of product – a mortgage that was designed for people with impaired credit.

An adverse credit mortgage is a product that has been specially designed to help people with credit problems to re-finance or to pay off other debts. The adverse credit mortgage market has grown over recent years in line with the increase in people who have a bad credit history. It is estimated that one in four people will be declined for a standard mortgage because of their bad credit. But there are now more mortgage lenders and specialist companies that are targeted at this market, which means that there is now more choice.

An adverse mortgage is similar to a standard mortgage. The main difference is that the interest rates may be slightly higher than normal and there may be restrictions on how much you can borrow. The loading applied will depend on the amount of bad credit. A couple of arrears and a CCJ will be penalised less than if there is a bankruptcy or IVA in the credit history. You need to make sure that you can meet the required terms. If you can show that you are making regular payments as agreed with the lender it can help repair your credit rating. A good record of prompt payments will mean you credit history looks much better within a couple of years.

To get help on Problem With Mortgage Arrears or a No Proof of Income Mortgage visit the Heron Mortgages website and ask them for a quote.

Although the adverse credit mortgage market is smaller than the main mortgage market it can be more complicated. It is a good idea to get expert advice (something about Heron). An adverse credit mortgage broker will have an extensive knowledge of all the products available and will be able to look at individual circumstances and see which products suit you best. Not only do they have the expertise to find the right product s, they can also help you to complete the application forms and help sort out any difficulties you may come across.