You want to buy a house, but you can't get a mortgage because you have bad credit? Stop looking for regular mortgages and start looking at the market for mortgages for people with bad credit.
People with bad credit aren't often able to get a mortgage from a traditional lender. Why? Because you are a bad risk if you have had trouble paying your bills, credit cards, or loans in the past. It might not be a good idea for someone to lend you tens or even hundreds of thousands of pounds.
But because there are more people in this situation now than there used to be, the demand for good mortgage products has gone up. Larger lenders are still wary of people with bad credit, so it's up to smaller, more specialised lenders to fill the gap. As a result, the bad credit mortgage market is growing and becoming more competitive. This means that customers with bad credit can find a variety of mortgage products that meet their needs and help them get their finances back on track.
So, what is a mortgage for people with bad credit?
A bad credit mortgage is a type of loan that is made so that even if you have bad credit, you can still buy your own home.
Most of the time, the interest rates on these mortgages are just a little bit higher than the rates on traditional mortgages. This is because the lender is taking on more risk.
- There may be some extra requirements on your mortgage that are there to protect the lender. Some of these could be a higher fee to set up the mortgage or stricter penalties for paying off the loan early.
- Most of the time, these mortgages can only be gotten through specialist mortgage advisors. In the UK, these advisors must be licenced by the Financial Services Authority (FSA).
A mortgage for people with bad credit can help you deal with your money problems and even help your credit score in the long run.
Getting turned down for a traditional mortgage product by a lender will show up on your credit report. You can avoid this by talking to a mortgage advisor who is independent and has a lot of experience. This person can help you buy a house with a mortgage that is made for people in your situation.
