October 30th, 2009 | 
Author:
Is it Easy to Get a UK Mortgage If You Currently Have A Bad Credit History?
There are a lot of people who experience problems with their credit at some point during their lives. As a matter of fact, last year, mortgages for people with bad credit records accounted for over 14% of all UK home loans. This proportion is growing annually.
There are several reasons people have a poor credit history. Often, people are just the victims of bad luck. Common circumstances may include Divorce, Redundancy, Sickness, Death or Bankruptcy. Any of these events can cause homeowners to fall behind on their house payments.
Main indicators that you may have a poor credit score are: You have entered into debt agreement. You have one or more court judgements filed against you. You’ve been declared bankrupt. You’ve been late with a previous home or other bank loan.
Before now, having poor credit could reduce your potential for getting a mortgage. There was a possibility that you would need to speak to an expert mortgage lender take an interest rate that is higher than normal borrowers.
UK Mortgage Lenders have started to become more open-minded to those people with poor credit ratings. They are more interested now making a point to recognize those who are typically good borrowers but who have simply had a little bit of bad luck. Numerous mainstream lenders will now offer home mortgages for those people with an unperfect credit history.
Within the last several years, the range of UK mortgage contracts from banks and building societies has grown greatly. The increase in competition simply means that mortgage deals that are being offered to borrowers with poor credit have got better. There’s lower rates and terms that are more welcoming. One of the advantages of borrowing from these mainstream lenders (typically building societies) is that they will offer you the chance to change to one of their best buy mortgage deals in the next two or three years - as long as you have been up to date with your payments.
In fact, those with only somewhat adverse credit histories usually realize that the rates they’ve been offered are less than 1% over the lender’s usual variable interest rate. Occasionally they even qualify for similar mortgage deals being offered to mainstream borrowers.
For those with notably bad credit, what generally happens is, the more severe the credit reating, the higher the interest rate becomes. At the top of the scale, recent bankruptcies and more severe credit matters may find interest rates as high as 11%. These rates do not apply to most borrowers, so don’t let that discourage you.
If you have ended up with a really bad credit rating, you can improve your situation by making reliable payments on any financial product. Mortgage lenders want to see payments that are unbroken and constant. It’s not the amount that matters. It is the reliability that really counts. Along with a constant income, this will really help to improve your credit score. These two things are the prime ways that those who have positive credit scores got those scores.
Mainstream borrowers can now expect and anticipate a very wide choice of UK mortgages: variable mortgages, tracker mortgages, fixed mortgages the list keeps going on. The best news is that most loans are now possible with poor credit rating mortgages as well. A lot of lenders working with bad credit cases are now providing close to the same choices to those in the mainstream mortgage market. Two year fixed rate mortgages are becoming more popular because they offer a level of security. Even if interest rates change, payments on a fixed mortgage stay the same.
To get the best mortgage deal, it’s worth it to accept some advice from the professionals when looking for a credit mortgage. You should consider speaking to a bad credit mortgage specialist, who will be able to study a bigger variety of home mortgages for you. Look around to get a deal that will fit you best. If you have got your finances controlled now and you’ve met with all legal commitments concerning your past debts, you’ll have a good chance to get a home loan.
Brian Harbinson
http://www.articlesbase.com/real-estate-articles/how-easy-is-it-to-get-a-uk-mortgage-if-you-have-a-bad-credit-history-127417.html
Getting a mortgage–bad credit?
What are my chances of getting a mortgage with a poor credit history? Is it easier to get a mortgage with poor credit than it is to get credit cards, auto loans, etc.? Are mortgage companies more lenient?
If you have bad credit, you definitely do not want to risk getting a house. Mortgages are very hard to get right now because of the leniency that did occur in the past 2 or 3 years. If you cannot even get a credit card, you will definitely not be able to get a house. Sorry.
References :
Have you watched the news lately? Heard anything about ’sub-prime mortgages’? It’s had a doozy of an effect on our economy….this possible recession we’re in is directly related to companies giving money to people like yourself (no disrespect intended). So no, I don’t think you’ll be likely to get any kind of decent mortgage. And don’t listen to those guys who promise to make it easy, cheap, and quick. When you read the fine print they’re charging you something like 99% interest.
Work on paying off debts and restoring your credit rating (I raised my FICO from 600s to 800s in just a few years). When the economy settles a little bit, you may just find you qualify, and more importantly, can actually afford to buy a house.
References :
It is totally possible for you to get a Prime Mortgage with a competitive rate without the lender even looking at your credit. Just go to a mortgage lender who does underwriting. They look at how you’ve paid your rent the past couple of years, if you’ve had a steady job and a steady income. 60% of mortgage lenders still use this old-fashioned method but you have to make sure you DON’T get ripped off. Some lenders will try to charge ridiculous rates just because they have to do the extra work but if you find a good lender there’s no reason you shouldn’t be able to get a good rate. Also, one downside is that they will not do underwriting with 100% financing.
References :
Poor credit is subjective and relative. your definition of poor may mean 560 credit scores and some mortgage lenders will say 400 and below. FHA used to allow any credit score as long as you had sufficient income from a steady job of 2+ years. i have seen home loans recently advertised with a 350 credit score. of course with scores that low you will probably get a low teen rate from hard money lender. There are some credit cards in general that are easier to get than trying to get approved for a home loan with bad credit.
References :
http://www.mortgageloanshop.net
If your credit score is poor and you are looking to buy your home, you can go for a bad credit home mortgage loan. Poor credit history includes series of late payments, bankruptcy or failure to pay bills. No matter how bad your credit history, with a bad credit home mortgage loan, you can easily borrow money to finance your house. This helps you to buy a home, redecorate your home or consolidate your loans. This type of loan reduces your total monthly payment because of lower interest charges and liabilities. As this loan gets tax relief, your tax liability reduces.
http://debt-trap.com/category/Information-on-Bad-Credit-Home-Mortgage-Loans.html
References :
http://fico400.com/
They are still approving mortgages
with low credit scores, don’t know
how they do it, but they are pretty good.
References :
10 years as Realtor in Florida, we have sent them bad
credit applicants which they got approved for us.