Mortgage loans bad credit
One in four people in the UK has, today or in the past, suffered from the problems associated with having a bad credit record. Whether it be mortgage loans applications, credit cards applications or personal loans applications, having a bad credit record means that the applicant is earmarked as a sub-prime credit borrower. As a result, they have to endure the humiliation of loans and mortgage application rejections by many of the high street lenders who choose not to look past the bad credit history documented in the applicant's credit file.
If this sounds similar to your predicament and you are currently looking for a mortgage then don't lose heart! There is in fact a much greater chance of you being able to secure a mortgage of some kind than not being able to secure a mortgage of any kind. You just have to know how to approach the situation and where to look for suitable mortgage loans!
Securing mortgage loans with a bad credit record
When it comes to applying for mortgage loans bad credit records are something that all lenders look at. However, lenders do differ in their 'interpretation' of an applicant's bad credit record, with some specialist mortgage lenders who deal in bad credit cases taking the least stringent line. In fact, the criteria by which some of these specialist mortgage loans companies assess a mortgage application could not be more different to the criteria used by mainstream lenders, enabling other factors beyond an applicant's bad credit record to be considered.
So, what are these 'other factors' that specialist loans companies look at when considering a mortgage application from a person with a bad credit history? Here is a shortlist of what they'll look for: -
Mortgage loans bad credit factor #1
Employment stability - how long you've been working in a particular job or at a particular company
Mortgage loans bad credit factor #2
Employer references - used to assess trustworthiness
Mortgage loans bad credit factor #3
Financial stability - how stable your income is, how regular your household expenses are and how much debt you are carrying
Mortgage loans bad credit factor #4
Homelife stability - how long you have been living at your current address, whether you are a homeowner or a tenant, and whether you are married or single.
The answers given to questions relating to these factors on the mortgage application form will help the loans company decide on the level of risk associated with extending a mortgage loan to you. If you are low risk then you'll be able to get a relatively good mortgage deal. If you are high risk you'll get a mortgage deal but at higher interest rates and with a lower borrowing amount. To not be offered a mortgage by a specialist bad credit mortgage loans company you would have to be an exceptionally high-risk applicant with CCJs coming out of your ears. Even then, a different specialist loans company might be willing to take the risk.
So, if you're having problems securing mortgage loans because of bad credit, go to a specialist lender who deals with mortgage loans for people with a bad credit history. You're almost guaranteed acceptance if you do!