All About Bad Credit Mortgages

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.