If you have had bad credit registered, such as missed payments, defaults, county court judgments, mortgage arrears, bankruptcy or an Individual voluntary arrangement getting a mortgage from your traditional high street will be a struggle therefore there are specialist lenders that can help clients. These cases are more complex and experience is important in this area, hence why you should use a bad credit mortgage broker.
What is an adverse mortgage?
The term adverse mortgage or Subprime Mortgage is the same as a Bad Credit Mortgage. This is a mortgage which is more accepting of clients that have a low credit score due to bad credit being registered. Lenders that offer adverse mortgages typically offer their products through poor credit mortgage brokers, such as The Money Hub.
What types of bad credit are there?
There are several types of bad credit that maybe registered against you such as:
Missed Payments – This is simply where you have not made a payment in time. Sometimes the lenders may give you 30 days to make the payment and therefore they won’t put a mark on your credit profile, however other lenders can register the missed payment within days.
Defaults – This is typically where you have missed several payments and maybe you are 3-6months behind. At this point the lender will register that you have failed to keep to the agreed terms and are in default.
County Court Judgements (CCJ Mortgage) – this is where the lender has registered a claim against you due to non-payment of a debt at a county court.
Other forms of bad credit include, Individual Voluntary Arrangements (IVA) and bankruptcy. Upon review of your credit report your adverse credit mortgage broker will be able review your options and give you advice on the bad credit mortgage options that you have available.
How long does bad credit show on your credit file?
The main credit agencies in the UK are Experian and Equifax. These record your payment track record over the last 6 years. After the 6 year period the data simply falls off the report, however some bad credit may be registered in other places, for example, if a debt went to court the creditor may have recorded a charge against your property (if you are a homeowner) and this will be recorded at the land registry until the debt is paid and then the charge can be removed.
Can I get a mortgage with a default against me?
The good news is that there are lenders who are willing to help clients that have a default registered, however the options and the rate you will be charged will depend upon many factors, for example when was the default registered, what type of credit was the default on, how much was the default for and have you managed to resolve the issue. A general rule of thumb is the older the default the more options you will have and the lower the rate will be compared to a recent default.
Can I get a mortgage with a county court judgement registered?
Your high street banks will typically require any CCJ to be registered over 3 years ago, be satisfied and you will need a good credit score, however there are lenders available through adverse credit mortgage brokers who are more flexible and therefore able to help clients. The rate you will be charged will depend upon when the CCJ was registered, how much the CCJ was for and have you since managed to resolve this?
What should you look for in a bad credit mortgage broker?
When trying to decide what mortgage broker to use these are points you should consider:
Experience – What is their experience within the mortgage market? Have they helped similar clients in the same position and how did they overcome the challenges.
Reviews – Does the adviser & company have good reviews. Maybe look on reviews.co.uk or Trust Pilot.
Lender Panel – Are they able to access all mortgage lenders or do they have a panel who they work with.
Fees – Do they charge a fee for their services and if so, what is the amount and when payable.
Availability – What hours do they work and does this fit into your schedule.
Products – Are they able to advise you across multiple products, for example if you are a homeowner and looking to raise money can the broker look at remortgage options as well as secured loan options? Or when borrowing money you should make sure the family is fully protected, so is the mortgage broker able to give you protection advice such as Life insurance, Serious illness cover &/or Income Protection insurance.
How to find a mortgage advisor for bad credit?
The Money Hub is an adverse credit mortgage broker and would be happy to help you discuss what your options are. There are many specialist lenders who offer their products through mortgage brokers such as, The Money Hub, who could potentially help you. Please either call the office or complete the above enquiry form where you will be able to schedule a call with a bad credit mortgage advisor.
This is a mortgage broker that has knowledge and experience in helping clients that have a poor credit profile due to missed payments, defaults, County court judgements etc. being registered against them.
You can register and view your credit report by visiting the website of either Experian, Equifax or Check My File. Normally you can view your credit report for free for a limited period of time and then a charge maybe payable.