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.