Getting An Adverse Credit Mortgage

There is also another group of people who qualify for an adverse credit mortgage. If you are self employed, self cert mortgages may be the only possible way for you to obtain a mortgage for your home, and this type of mortgage is often considered under the same banner as the adverse credit mortgage.So where can you get an adverse credit mortgage? Well, there are a lot of lenders who specialise in this area, including Kensington, GMAC-RFC and others, but depending on your credit history you may not need to go to a specialist lender at all. A couple of CCJs for small debts may well be accepted by a mainstream lender; anything more and a bad credit mortgage loan lender is your best bet.

If you have applied for an adverse credit mortgage, you should expect the interest rate to be higher than for a standard mortgage. The loading applied by the bad credit mortgage company will depend on the level of bad credit. So a couple of arrears and CCJs will be penalised less than if there is also a bankruptcy or IVA in the credit history. With an adverse credit mortgage, borrowers should expect to pay at least one per cent more than the standard rate offered for standard mortgages, but the loading can be several percentage points.

The good news is that an adverse credit mortgage can help you repair your credit history if you manage it properly. A good record of prompt payments will mean that your credit history looks much better within a couple of years. Some people also take the chance to consolidate their debts so that there are no other negatives on the credit report. So if your credit history is less than perfect, consider getting an adverse credit mortgage.