Adverse Credit MortgagesDon't let your credit rating stop you from getting a good mortgage deal

Adverse credit mortgages, also known as subprime or bad credit mortgages, have been in the press a fair amount recently due to their contribution to the recent property downturn. If you have been looking to buy a property over the past few years, you will have noticed that the lending criteria have tightened significantly in response to economic conditions, especially if you have a poor credit history. If you have had debt problems, had a County Court Judgement (CCJ) filed against you or you have missed payments on your credit card or other loan, your credit rating may well have been damaged. More info

The implications of applying for adverse credit mortgages are that you will usually be charged a higher interest rate (due to lenders seeing you as a higher risk borrower) and that you will generally need a larger deposit to put towards your property. However, there are lenders that specialise in providing mortgages to people with a less than perfect credit rating, and it's worth approaching these lenders as well as the more mainstream high-street lenders, because their product offerings are likely to be more suited to your financial circumstances. We would advise getting a copy of your credit report from one of the large credit reference agencies, because then you can check your credit status before making any adverse credit mortgage applications. Less