What is Adverse Credit?
Adverse credit is a commonly used phrase when describing events on a person’s credit history such as late or missed payments, defaults, CCJs, debt management plans, bankruptcy orders. Another such term used is bad credit. Typically those with a history of adverse credit will find it more difficult to arrange a loan including mortgages and will likely find the rate charged to be higher than that offered to a borrower with a clean or good credit history.
Adverse Credit Mortgages
An adverse credit mortgage is a term used to describe a mortgage as offered by a specialist lender that arranges loans for applicants who have a history of bad credit. The level of adverse credit will determine which lenders are available and in turn the rate applicable. Other contributing factors such as the loan to value (commonly referred to as LTV) can also determine the options on offer. Due to the complexity of these products many applicants look to use the services of a specialist adverse credit mortgage broker who will be able to use their knowledge to help secure the right mortgage and for those that are unable to proceed at the time, assist in putting a plan together to improve their chances for the future.
Can I get a mortgage with adverse credit?
Obtaining a mortgage with adverse credit is certainly a possibility. As with any credit issues when applying for a mortgage, it is dependent on the specifics of the adverse itself together with the overall situation of the applicants circumstances. Many high street lenders will veer away from those applicants that have a history of adverse credit and only possibly consider those with mild adverse events however, specialist lenders are available who specifically look to assist those with adverse credit events recorded on their files including, but not limited to, late or missed payments, defaults, CCJs, Debt Management Plans and bankruptcy.
Adverse credit Mortgage Rates
Interest Rates for Buy to Let Mortgages where applicants have Adverse Credit will vary greatly, depending on the precise nature of the Adverse Credit, when it occurred and the specific amounts involved.
Many lenders will look at the mortgage applications with a variety of Credit Issues, although the rates are likely higher than “high street” rates. A detailed discussion with one of our specialist brokers in conjunction with a review of your credit file will determine which lenders may be happy to lend and what rates will be available.
Adverse credit mortgage lenders
Adverse credit mortgage lenders, is a collective term used to describe mortgage providers who specialise in assisting those with a history of adverse credit registered on their credit files. People find themselves with a credit file affected by adverse credit events for a variety of reasons however, this does not necessarily mean they are not able to obtain a mortgage. Depending on the severity of the events and indeed the dates involved a mainstream lender may not be able to assist. A specialist adverse credit mortgage lender can therefore take a more pragmatic approach with their criteria being more aligned to those who have this particular need. Having an expert adverse credit mortgage broker can also be advantageous when looking for this type of mortgage.
Adverse Credit mortgage brokers
Searching for a mortgage if you have Adverse Credit can be particularly frustrating, even the smallest credit penalty can exclude you from a large number of high street lenders. Fortunately, we have access to a wide variety of high street and specialists lenders that are more sympathetic to a client’s situation and because we are Bad Credit Experts, we have the knowledge to give you the best possible chance of achieving the mortgage you require.
Let us do the hard work for you!