Despite recent problems in the sub-prime market there are still a good number of lenders who offer mortgages for people with a poor credit history and mortgage advisors can help you locate the right adverse credit mortgage for your situation.
It is likely that the economy will become trickier in the next year or two.
This, together with high levels of debt will help to push the sub-prime market forward in the next five years. As more people default or make late payments, more will become poor credit mortgage candidates.
Current estimates are that one in four people, or five million households in the UK, come across problems when trying to get a mortgage or remortgage because they’re suffering from poor credit history. This poor credit mortgage market is also known as the sub-prime market.
Every mortgage application will mean a check by the lender with a credit reference agency such as Experian or Equifax to determine your creditworthiness. You will have a poor rating or low credit score and as a consequence would have problems getting a mortgage with a high street lender if the search reveals any problems. There is a wide range of products which are designed for people who have blemished credit records.
In addition, in a culture of borrowing and consumer credit as we now have, there are times when people take on too much debt and can find themselves struggling to make repayments.
Poor credit mortgages are for those people who have a bad credit history, maybe showing defaults, mortgage arrears, bankrupt, county court judgments (CCJs) or other problem debts.
Specialist bad credit mortgage providers give options to obtain a mortgage, rehabilitate finances and improve future credit ratings. There are still plenty of lenders in this sector including global investment banks and specialist arms of high street banks who underwrite a broad spectrum of cases, from people with minor financial misdemeanors to those with heavy adverse credit.
Every mortgage application will mean a check by the lender with a credit reference agency such as Experian or Equifax to determine your creditworthiness. If the search reveals any problems, you will have a poor rating or low credit score and as a consequence would have problems getting a mortgage with a high street lender. The main reason people fall into the sub-prime category is because they have suffered previous credit difficulties and consequently have a bad credit rating. As more people default or make late payments, more will become poor credit mortgage candidates.
Because they have suffered previous credit difficulties and consequently have a bad credit rating, the main reason people fall into the sub-prime category is. A bad credit rating does not necessarily mean you have done anything wrong in the past. Divorce and redundancy can account for some of the reasons why people get into financial difficulty through no fault of their own.
Previous research suggested that the market would continue to expand, and faster than the regular mortgage market. This is as a result of levels of debt in Britain, which are at their highest ever level and still increasing, and more difficult circumstances such higher interest rates on mortgages.
Would-be borrowers who have no credit history at all, individuals who do not appear on the electoral roll, and people who have moved a lot of times in a short space of time can also find themselves categorised as a non standard borrower.