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Bad credit history mortgages uk explained

by Jim ONeil on November 18, 2010

in Bad Credit History Help

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Having bad credit history can affect your chances of getting a mortgage negatively.

There are quite a lot of lenders in UK that are always eager to provide mortgages to borrowers with a good credit history but very few would be willing to cater to bad credit borrowers.

With bad credit borrowers, the risk for the lenders is quite high even though the loan is secured against a property.

Bad credit history mortgages are the best available options for bad credit borrowers since qualifying for a regular mortgage can be out of question.

How can bad credit history affect your chances of getting a mortgage?

Having bad credit history can have a negative impact on your ability of getting a mortgage. When you first apply for a mortgage with a lender, the loan company would conduct a thorough background and financial check on the applicant.

A credit history check would be done to see if you have had any arrears, CCJs, IVAs or bankruptcy in your history. The high street banks and lenders will reject applicants with low scores and with any problems in the history in the past.

The best thing to do in this case would be to contact one of the sub prime lenders that cater to bad credit borrowers specifically.

Finding a mortgage deal when you have bad credit

Finding bad credit history mortgages is not actually very difficult in UK. There are a few loan companies online that cater specifically to those with bad credit history. However, you will have to know that these loan companies would not be offering their best deals to bad credit borrowers. The rates that are offered by these lenders are higher than what good credit borrowers enjoy.

Some of the lenders that still cater to bad credit borrowers are Chortley and District BS, Lloyds TSB Scotland, Cheltenham and Gloucester, The Mortgage Works etc. You can contact all of these lenders online and apply for a mortgage on their website. There are also several good online brokers that can be very helpful when you are looking for bad credit history mortgages.

These brokers have good contacts in the industry and so they can provide you with several options in bad credit history mortgages. These brokers can provide you a list of loan deals available for your credit profile and comparison charts so that you will find it easier to select the best deal available to you.

Sonia O'Leary, Co. Claire

The problems in Ireland are even worst now. We can’t even get bad credit history mortgages.

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