So, you've got a bad credit record. Perhaps you've missed a few credit card payments, have had a County Court Judgment awarded against you or have previously been made bankrupt - but this doesn't mean you can't get a mortgage.
Even if you've got a poor credit rating or have had credit problems you can still get a mortgage. Interest rates on bad credit mortgages are higher than standard mortgages and you will probably need a larger deposit, but uSwitch can help you find the right one.
What are bad credit mortgages?
Bad credit mortgages can help people with poor credit ratings get a mortgage, they are also known as sub-prime mortgages and adverse credit mortgages.
Bad credit mortgages are the same as standard mortgages, but are available to people who would fail standard lender credit checks.
Interest rates and charges tend to be higher as people with poor credit ratings are deemed to be a higher risk.
Who are bad credit mortgages suitable for?
How do bad credit mortgages work?
Bad credit mortgages are the same as standard mortgages, but have higher interest rates and charges.
You will also probably need a larger deposit of around 30 per cent or more of the value of the property.
Many types of mortgage deals are available, for example, fixed, variable, and discounted rates.
After a few years of paying a bad credit mortgage on time it should 'repair' your credit rating sufficiently to be able to move to a standard mortgage and a lower rate.
Impact of the credit crunch on bad credit mortgages
As a result of the global credit crisis there are fewer mortgages available and some UK lenders have stopped offering mortgages for people with bad credit ratings.
Many lenders now require people to have a higher deposit and interest rates and charges have also increased.
Where to get a bad credit mortgage.
Before looking for any mortgage it is a good idea to check what is on your credit reference agency file to see if you have any credit problems.
It's essential that you compare the total cost of different mortgages, taking into account fees and charges.
You should also avoid making lots of applications for credit, as these searches will affect your credit rating. Get free online access to your credit report.*
Find a bad credit mortgage with uSwitch now
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