Adverse Credit Mortgages

Research shows that 1 in 4 people have experienced trouble in the past while trying to obtain a mortgage, so it is no surprise that the subject of mortgages inspires apprehension in some people. Although the main reason for being refused a mortgage is often because the applicant has a poor credit history, there are a number of other factors taken into account that could adversely affect a mortgage application. These include being self-employed, if you have any CCJ’s against your name, or if you have defaulted on other credit repayments in the past e.g. loan or credit card repayments. Successfully identifying the reason for being refused a mortgage is the first step towards rectifying the problem. That way you are in a position to take action to rectify this reason and successfully obtain a mortgage.

Adverse status lending has been common now for a number of years; these lenders make mortgages more obtainable for those with a poor credit history or credit rating, and allow mortgages to be obtained by everyone. If you can obtain a mortgage with a poor credit rating, you are in a good position to start repairing a poor credit record. Types of adverse credit mortgages that are commonly advertised include non-standard, sub-prime, non-conforming or impaired credit mortgages. Adverse credit mortgages generally feature fewer options than other standard mortgages, particularly regarding interest rates; rates are often higher for adverse credit mortgages because the mortgage company sees the borrower as being a higher risk.

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