I was once told by a Bank Manager many years ago that if someone you spoke to had bad credit then turn them away for a Mortgage. This stuck with me for many years like many other Mortgage brokers in the current market.
But what is a 'bad credit Mortgage'; quite simply it's an individual who wants to apply for a Mortgage who has in the past, had a low credit score due to various reasons. This could be because of missed credit commitments, none payment of a phone bill....the list goes on. Why would a lender allow me to borrow money if I have missed credit commitments you ask? Well, in reality the lender will assess your situation and your ability to repay, if the lender feels you can afford the a bad credit mortgage then they will offset their risk with a less favourable interest rate, which naturally offsets the lenders risk
How can we help: Over the past few years there has been various Mortgage lenders who specialise in bad credit mortgages. This has opened the door to thousands of consumers who may have had bad credit due to a 'blip' in a past life or even an overspending habit. What is most significant about this culture change in borrowing money, is that these specialist lenders will consider all sorts of past credit issues such as County Court Judgements (CCJs), Defaults or even discharged bankrupts. There are obviously certain rules depending on the lender, but with some consideration and sometimes a bit of patience it is realistic to find a Mortgage lender.
Help is at hand
Bristol and Bath Financial Services have great relationships with all lenders particularly your 'adverse lenders' We can give you the right advice on the various rates associated with bad credit Mortgage lenders. The other great news is that a certain few adverse credit lenders will now consider a help to buy application where the goverment will contribute towards your deposit (upto 20%) which is interest free for 5 years
The dreams of yesterday are the hopes of today and the reality of tomorrow. Science has not yet mastered prophecy. We predict too much for the next year and yet far too little for the next ten.
So why not get in touch with us today and see what Mortgage deal we can get you.