Bad Credit History Mortgages

Having a bad credit history can be a deflating and traumatic experience, whatever the reason. But there are deals out there for you. Specialist lenders offer what are known as credit repair deals. Here, you may have to pay a higher interest rate than you would with a conventional deal. However, once you have maintained your payments on one of these deals for a sufficient period (usually about three years) your credit history will have repaired itself. You are then in the position to re-mortgage back on to a high street deal and reap the benefits of more competitive rates. 
 
Here at Heron Mortgage Services we will look at your individual circumstances and find the best mortgage for you. We can help you find a mortgage even if you have been turned down elsewhere. 

Each enquiry will be dealt with by an experienced advisor in a constructive and sympathetic manner. If you have County Court Judgements, credit card defaults, loan defaults, mortgage or rent arrears, are self-employed or have difficulty proving your income, we can help you.

Just get in touch, tell us about your situation and then let us do the hard work.
Bad credit history mortgages come in a number of guises. Impaired, sub-prime, non-conforming, specialist and adverse all mean the same thing, it's simply that different lenders adopt different terms to represent borrowers who have or have had credit problems in the past. This might be county court judgements (CCJs), previous mortgage or loan arrears or arrangements with creditors.
Having an adverse credit product option means that borrowers who are not able to get a mortgage from a traditional high-street lender may still be able to get the mortgage they need to buy their house.
Traditionally, bad credit history mortgages have higher interest rates because of the increased risk to the lender. However adverse credit mortgage products are now well established they are not really all that different to the mortgage products offered by high street lenders.
The terms light, medium and heavy adverse credit represents the level of adverse credit a borrower may have within each product range. This varies from lender to lender. For example, a light or low adverse product may allow for one missed mortgage or rent payment in the last 12 months and up to £2000 of CCJs. A heavy adverse product, however, may have no limits on payments missed or CCJs - typically, the more adverse credit, the higher the interest rate charged. They may also vary in loan-to-value available.

Who are adverse credit mortgages suitable for?

Statistics reveal that one in five people in the UK have what is regarded as a poor credit rating. People falling under this category have a wide range of occupations, income levels and ages. It may not be a matter of financial mismanagement but simply unemployment or even being in dispute with a company over payment of a bill. Individuals with a poor credit rating are seen as non-standard by high street lenders and as a consequence will have difficult being accepted for a mainstream mortgage product.
There are many reasons why people get turned down for a high-street mortgage. Many people may not realise that one of the most common reasons is paying a bill late.

Other reasons include having CCJs against you or financial problems as a student. Some people, such as those who have lived abroad or recently divorced, may not even have their own credit record.

An adverse credit mortgage gives people who are classified as non standard the opportunity to buy or re-mortgage a property and rebuild their credit rating.

Are there any downsides to bad credit history mortgages?

There are no real downsides but you would usually find that interest rates are slightly higher than those of high-street lenders. The higher interest rate reflects the increased risk taken by the lender in lending to someone who has had previous financial problems.
Redemption penalties do obviously exist but they are coming more into line with other products and are becoming less of an issue. Many lenders are offering fixed rates that are only marginally higher than high-street prices

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

The overall cost for comparison is 7.0% APR. The actual rate payable will depend on your circumstances. Please ask us for a personalised illustration. A fee is chargeable only on completion, typically 1.5% of the loan amount depending on your circumstances (subject to a minimum of £1,000 and maximum of £3,000). For a mortgage of £100,000 the fee would be £1,500. Early repayment charges may apply and will vary depending on the mortgage.
Adding existing debt to your mortgage will increase both the repayment term and the overall cost