Poor Credit History Mortgage
These types of mortgages do mean that the lender is taking a bit more of a risk which usually means a slightly higher interest rate. This is only fair if you have demonstrated problems with repayments in the past. However, you will still be able to get a mortgage even with a poor credit history. Furthermore, if you can maintain future payments with the new mortgage then you should be able to switch to a more standard mortgage after you have re-established your payment record.
When selecting a poor credit history mortgage you will probably notice that there is sometimes a bewildering choice of deals. The mortgage that you will be accepted for will be dependent upon your credit history, however things may not be as bad as you think. For example, if your recent record is good, this may be reflected in the deals offered to you. On the other hand, if you have serious adverse credit like an IVA for example, then this is bound to mean higher rates because of the increased risk to the lender.
Interest Rates and Fees
Despite the fact that interest rates have been gradually increasing, research shows that this has not been directly reflected in adverse credit mortgage rates. Such deals are more costly at the moment, mainly due to an increase in fees but there are still a great deal of lenders prepared to offer poor credit history mortgage deals. In fact, some even plan to increase the number of such mortgage applications they receive.
Adverse Credit Mortgage Advice
Due to the ever changing nature of this sector and the sometimes high level of complexity, it is essential that you get advice from an independent mortgage broker. This way you can be sure that you are getting the best poor credit history mortgage package.
