Our expert guidance finds solutions for home financing, even with credit challenges.
An adverse credit mortgage is a type of mortgage designed for individuals who have a less than perfect or “adverse” credit history. This means that the borrower may have had issues such as missed payments, defaults, County Court Judgments (CCJs), or other negative marks on their credit record
Eligibility: Adverse credit mortgages are typically offered to borrowers who might be considered higher risk by traditional lenders due to their credit history.
Higher Interest Rates: Lenders offering adverse credit mortgages often charge higher interest rates than standard mortgages to offset the increased risk associated with borrowers who have experienced credit problems.
Limited Product Choice: Borrowers with adverse credit may have a more limited selection of mortgage products and providers.
Criteria Vary: Lenders offering adverse credit mortgages have varying criteria and may consider different aspects of your credit history. Some may be more lenient than others, and the terms of the mortgage can differ.
Adverse credit mortgages can provide an opportunity for individuals with a less-than-ideal credit history to access the property market. However, it’s important to be aware that these mortgages may be more costly due to higher interest rates, and they may have stricter terms and conditions.
Borrowers should carefully consider their ability to meet the repayments and work on improving their credit history to access better mortgage deals in the future.
A good place to start when you have issues with your credit file is to check your credit report.
It’s important to note that while having a good credit score can increase your chances of being accepted for a mortgage, there are other factors that lenders consider as well. These include your income, employment history, debt-to-income ratio, and the size of your deposit.
To increase your chances of being accepted for a mortgage, you can take steps to improve your credit score and address any issues on your credit report, such as reducing debt, making payments on time, and disputing any errors on your report.
If you need further guidance with understanding your credit report, send a copy of your report to admin@gomortgage.co.uk
Once you’ve signed up for the report, scroll down to the bottom of the page and select “Download Printable Report”. You can then save the report and send over to us for your free credit report review.
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