Never Say Never
Regardless of your credit history, you should have the ability to get a mortgage. A mortgage for adverse credit, or bad
credit, is not hard to get. However, you will have to take advice from the professionals so that you can get the right deal. There are some lenders that charge a hefty interest rate for an adverse credit mortgage or they will attach a severe penalty. If you are already dealing with financial issues, you need to be sure that you get the right product to fit your needs.
An adverse credit mortgage is known by many names, which will depend upon the lender. You may also hear them referred to as a credit impaired mortgage, a non-conforming mortgage, a credit adverse mortgage, bad credit mortgage, non-status mortgage or non-standard mortgage. Whatever the mortgage is called, they all indicate that they are similar products, which is a mortgage that has been designed for someone with poor or impaired credit.
Who can They Help?
These mortgages are specifically designed to help someone who has credit issues to refinance or pay off debts. The market for adverse credit mortgages has been able to grow quite a bit over the last several years, falling inline with the boost in people that have bad credit history. It has been estimated that about one out of every four people will get declined for a standard mortgage due to their bad credit. However, there are now even more mortgage lenders and specialists that are focused in this market. What this means for you is that you will have more choices.
Adverse mortgages are very similar to a standard mortgage. The difference here is that interest rates can be slightly higher than usual and there can be restrictions in terms of how much you are able to borrow. If you have a couple of arrears and a credit judgement under your name, it can be less against you than if you had a bankruptcy in your credit history. It is important that you are sure you can meet up with all of the required terms. If you are able to show that you can make payments on a regular basis, as you have agreed upon with your lender, it will help you to repair your overall credit rating. Having a good record of payments that are prompt will help your credit history to look better over just a few years, which may help you when you reapply for a loan with a lower interest rate.
It can Get a Bit Complicated
While the market is smaller than your main mortgage market, it can still be more complicated. It is always a good idea to get expert guidance. Adverse credit mortgage brokers will have great knowledge when it comes to all of the products that are available to you and will help you to look at what product will suit you best. Not only will they have great expertise, but they will help you to complete the forms and sort out any issues that you could come across.