SimplyFinance - Bad Credit Mortgage

Bank of England Predicts Lower Interest Rates

2007-11-28T00:00:00Z

On November 14th, the Bank of England said that if inflation is to hit the target that they've set at 2 percent in the next two years, interest rates will have to decrease in the coming months.

This information is part of the Bank's Quarterly Inflation Report which is the first official and formal assessment of the impact of the credit crunch on the UK's economy. While BoE predicts a lowering of the interest rate, they are still reporting that the economic outlook has deteriorated since the credit crunch took hold in August 2007.

In the report, BoE says that CPI will sit above 2 percent during 2008 due to an increase in energy prices as well as the depreciation of sterling. However, they foresee CPI decreasing to the target of 2 percent by mid 2009.

This assessment is based on the prediction that interest rates will decrease to 5.5 percent (from its current rate of 5.75 percent) in Q1 of 2008, to 5.3 percent by the second half of 2008, and finally down to 5.2 percent by early 2009.

Fears that the UK economy is slowing and that the housing market is quickly cooling down are thought to be the reasons behind the projected interest rate decrease. Reuters polled 50 economists, and of those, 46 believe the Central bank will decrease rates to 5.5 percent by the end of March, 2008.

This information solidifies many speculators' expectations that interest rates will fall twice in the next year, but there is still considerable uncertainty due to the uncertain nature of asset prices, consumer spending, and the global economy.

CLICK HERE TO APPLY FOR A MORTGAGE TODAY

All About Bad Credit Mortgages

2007-11-28T00:00:00Z

When you're looking for a new mortgage loan, you need to understand how your credit will affect the interest rate and the type of mortgage you'll be qualified to take out. There are a number of lenders and financial advice websites, like SimplyFinance, that will provide those with bad credit with bad credit mortgage advice.

If you've got a poor credit history and you're looking for a mortgage, the odds are quite high that you'll run into some problem. Instead of finding a standard mortgage through a High Street lender, you will need to apply for a bad credit mortgage, which is also called an adverse credit mortgage or a subprime mortgage. There are many people throughout the UK that have poor credit who need to consider taking a bad credit mortgage loan.

What's the difference between a subprime mortgage and a bad credit remortgage? A subprime mortgage and a bad credit mortgage are basically the same thing. Bad credit mortgages are also known as nonstandard mortgages, credit impaired mortgages, non status mortgages, and adverse credit mortgages.What is a bad credit mortgage or a subprime mortgage? When a mortgage is a bad credit or a subprime mortgage, it indicates that you may have a poor credit history, CCJs, or mortgage arrears. Due to this, you do not meet the traditional criteria for mortgage lending. When you've got bad credit, there is a higher risk associated with lending to you, so your lender will charge you a higher interest rate to balance the amount of risk that is associated with lending to you.

Who is eligible for a bad credit mortgage? Anyone who has bad credit, loan or credit defaults, a CCJ (County Court Judgment), rent or mortgage arrears, decrees, bankruptcy, or an IVA would benefit from taking out a bad credit mortgage.

How much can someone borrow with a bad credit mortgage? If you've taken out a bad credit mortgage, there are no lenders that will off you 100% of the value of your property. Bad credit mortgage borrowers can usually expect to be given around 90% of the value of the property, and in rare circumstances, you might be able to borrow up to 95% of your property's value.

How hard is it to get a bad credit mortgage? It may be easier than you think to obtain a bad credit mortgage. There are a number of lenders out there that cater solely to those who need bad credit mortgages. Once you have your mortgage, even though the interest rate will be higher than if you had a standard mortgage, the interest will most likely still be lower than the average interest rate on most credit cards.

Will I always need a subprime mortgage? No, you won't always only be eligible for bad credit or subprime mortgages. If you take out a bad credit mortgage, and if you make all of your payments on time for three years, your credit score will have improved dramatically. Once your credit score is higher, you may be qualified to refinance your loan with a mainstream mortgage. When you switch from a bad credit mortgage to a standard mortgage, your interest rate will decrease significantly, and in the long run, this will save you thousands of pounds.

Where can I find subprime mortgage or bad credit mortgage advice? Subprime and bad credit mortgage advice can be found right here at SimplyFinance. Take just a moment to fill out our short contact form, and one of our representatives will contact you shortly to introduce you to a bad credit mortgage broker that will help you find the best bad credit mortgage available to you based on your personal credit history and current financial circumstances.

CLICK HERE TO APPLY FOR A MORTGAGE TODAY

How to Find a Bad Credit Mortgage

2007-11-28T00:00:00Z

It's not as hard as it once was to find a bad credit mortgage lender. With an increased number of UK residents looking for bad credit mortgages, there are more and more lenders providing bad credit mortgages or sub prime mortgages to meet the high demand. Bad credit mortgage lenders cater to those who have poor credit histories, CCJs (County Court Judgments), mortgage or rent arrears, decrees, bankruptcy, or IVAs. These lenders are willing to accept the larger amount of risk associated with lending to someone with poor credit history.

A sub prime mortgage and a bad credit mortgage are basically the same thing. Bad credit mortgages are also known as nonstandard mortgages, credit impaired mortgages, non status mortgages, and adverse credit mortgages. When you have any of these things on your credit report, you do not meet the traditional criteria for mortgage lending, so you'll have to find a bad credit mortgage lender. Since the amount of risk involved with lending to you is higher than the amount of risk associated with lending to someone with good credit, your bad credit mortgage lender will charge you a higher interest rate to cover their investment.

Finding a Bad credit Mortgage Lender with a Low APR

If you're willing to spend the time and effort to shop around for your bad credit mortgage, you could save thousands of pounds. Like any other competitive industry, the mortgage industry tries to find ways to attract new customers with special offers and deals on their products.

When you're looking for a bad credit mortgage lender, look for a "loss leader," meaning that the lender will offer you an initial low fixed rate despite the fact that it's a sub prime or bad credit mortgage. If you are not locked into this mortgage, every couple of years, you may want to consider looking around for a better off with a more competitive rate.

Watch out for early redemption penalties when you're looking around for the best bad credit mortgage deal. There is typically a fee associated with leaving your lender after the introductory period of your mortgage loan. If you do not see any information about early redemption penalties in your mortgage contract, be sure to ask your lender about their early repayment policy and fees.

While sub prime or bad credit mortgages are only available to those with poor credit histories, they are actually able to help you repair your credit over time. If you make all of your payments on time for three years, your credit score will be improved. Once your credit score is repaired, you'll be eligible for a standard mortgage. The interest rate on standard mortgages is almost always lower than the interest rate on bad credit mortgages, so by refinancing and moving your loan to a standard mortgage lender, you will be able to save thousands of pounds in the long run.

Where Can I Find a Bad Credit Mortgage Lender?

Most lenders are able to offer mortgage advice based on your particular financial circumstances. Simply by doing an online search for bad credit mortgage lenders in the UK, you will get pages and pages of results. Although it may seem simple to just do an internet search to find your lender, it's advised that you find a mortgage broker that allows you to search deals from many lenders at one time. By doing this, you will have a much easier time finding the best bad credit mortgage deal for you.

If you don't have time to search through hundreds of bad credit mortgage offers, let SimplyFinance do it for you. Once you provide us with a bit of information, we'll introduce you to a ad credit mortgage broker that will answer any bad credit mortgage questions you may have before they do an extensive search of the bad credit mortgage deals available to find the very best deal for you.

CLICK HERE TO APPLY FOR A MORTGAGE TODAY!