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.

The Adverse Credit Mortgage Guide

If you think you might need an adverse credit mortgage, then it's best to get some information about what an adverse credit mortgage really is and who it might be suitable for. Here's what you need to know about the adverse credit mortgage.

Adverse mortgages are known by many names, depending on the lender. Within the mortgage trade they may be known as non-conforming or sub-prime mortgages, in contrast with the standard mortgages for people with no credit problems. You will also hear an adverse credit mortgage called a credit impaired mortgage, a non status mortgage, a bad credit mortgage or a non standard mortgage. Whatever they are called they all indicate the same kind of mortgage product - a mortgage that was designed for people with impaired credit.

But what exactly does impaired credit mean when it comes to the adverse credit mortgage? If you are applying for an adverse credit mortgage, the chances are that you will have previous mortgage arrears or rent arrears in your credit history. You may have had County Court judgements (CCJs) entered against you. You may have entered into an individual voluntary arrangement (IVA) as thousands of people are doing now, or your credit history may include bankruptcy.