Is A Bad Credit Mortgage Right For You?
If you have a bad credit rating, trying to get a normal mortgage can certainly be very frustrating. Most banks, building societies and other home loan lenders will generally not offer you a loan. This can be very dis-heartening and unfair. You may have had a difficulty at one stage through no direct fault of your own yet you may still be being punished for this by the various financial institutions, So is there a way for you to still own your own home even if you have bad credit? Perhaps there is, and maybe you should consider looking into obtaining a bad credit mortgage instead.
Banks and other companies that provide mortgages in their traditional form will rarely allow people with bad credit to be given a home loan. Why? Well, they believe that if you have had issues paying other bills, then you are a much higher risk. This means that giving you a large amount of money in the form of a mortgage would be a really bad idea for business. This may not be true and people often learn from previous challenges they faced. Just because you did not make payments in the past, it does not mean you will fail to do so in the future.
Good news about bad credit mortgages in West Auckland
The good news is that there are a lot more people in this situation now then there has been in previous years. While larger banks and other lenders will still shy away of folks with bad credit, also known as adverse credit, there are now a lot of specialist lenders that are filling in gaps when it comes to providing loans and mortgages for people who have a poor credit history.
There is more good news for people with bad credit. Some smart lenders recognise that the past does not equal the future and also the size of the potential market. As a result, the bad credit mortgage market is becoming much larger and much more highly competitive. What is the benefit of this to you? Well, as more competition comes into the market. There are more and more lenders who are looking to provide mortgages for borrowers who have bad credit. This means more opportunity for you to get a mortgage suitable to your budget.
However, there are some common features about these bad credit mortgages which you should be aware of:-

They will typically have a higher interest rate than their traditional mortgage counterparts due to an increased risk of lending.

These mortgages often come with some additional conditions. These conditions may include things such as a higher upfront payment, or stricter redemption penalties.

Adverse credit mortgages are normally only available from mortgage advisors who specialise in the field. In the UK, these advisors must have authorisation from the Financial Services Authority (FSA).

Bad credit mortgages can aid you during financial difficulties and can help you to improve your overall credit rating for the long term.

Rejected for a mortgage because of bad credit
Did you know that having a regular traditional mortgage lender reject your mortgage can actually have negative effects on your credit history? This applies to any loan application as any rejection is added onto your credit history.
This can be easily avoided by speaking with a mortgage advisor who specialises in difficult cases such as poor credit ratings. These mortgage advisors have access to different lending sources and can help get you into a home by taking out a mortgage to buy the house. These loans will be affordable and are crated for people in similar circumstances as yourself.
 
So if you need help with a bad credit mortgage in West Auckland, give us a call today.