What exactly is a Bad Credit Mortgage?
Someone may have a bad credit history if they’ve previously been made bankrupt, failed to make a payment or they’ve had a County Court Judgment (CCJ) issued against them – visit our What is a CCJ? blog for information on CCJ Mortgages. Due to having a poor credit history, it’s difficult to get a standard mortgage; this is when bad credit mortgages come into play.
Although interest rates on bad credit mortgages are usually higher than standard mortgages, bad credit mortgages are exactly the same as standard mortgages; they’re just catered for those who would most likely fail a standard lender credit check.
Ensuring you’re on the electoral roll and paying all bills on time can improve credit ratings. It’s also worth closing any credit accounts you don’t use in order to avoid temptation. In addition, after a few years of having a bad credit mortgage and paying if off your credit rating should start to repair itself, allowing you to apply for a standard mortgage with a lower interest rate.
Please note that you should check your credit report before applying for any credit mortgage, even if it’s not a bad credit mortgage.
Mosaic Mortgages are specialists in assisting those with a bad credit history and can provide totally independent impartial bad credit mortgage advice. Visit our bad credit mortgages page for more information.