Mortgage With Poor Credit Rating, Bad Credit Mortgages, Low Credit Score, Advice & Solutions

Loans & Mortgages for people with a poor credit rating or bad credit score

Any number of things can cause you to have a bad credit rating which can make it difficult to obtain a mortgage, remortgage or loan through traditional high street bank or building society.

Some traditional lenders still work to very rigid guidelines and have a rather sanctimonious approach when deciding to approve an application for a loan or mortgage. If you have a bad credit history such as CCJs, IVAs or payment arrears, your chances of obtaining a mortgage or remortgage from one of these lenders is significantly reduced.

The reason for this is the majority of lenders use standard credit scoring procedures, This involves accessing your credit file and giving you a score based on its contents. Any instances of late or missed payments will reduce your credit score, and if you fail to meet the minimum number of points, your mortgage or loan application may be declined due to your perceived bad credit history.

Although there are no precise figures, an estimated one in five people in Britain are initially turned down for a mortgage by a high street lender.

In recent times specialist lenders known as adverse credit, non standard or non conforming have emerged into the market and they specifically cater for people suffering with low credit scores. As competition has increased, rates have fallen and they are far less punitive than in the past.

These lenders offer a whole raft of deals to people who have anything from a small £250 CCJ that was settled more than a year ago through to people who have been made bankrupt, have several defaults or CCJs.

Depending on your circumstances, you may not be off the radar for all mainstream lenders. As a rule of thumb, the worse your credit history, the more difficult and higher the interest you'll have to pay. Deals are plentiful with over 1,000 alone for people with CCJs. To be sure of getting the best deal, you should contact a broker. If your credit history is not too suspect, an independent broker will first check to see if a standard lender will consider you. If not, then a specialist lender might be able to assist.

Many of the specialist lenders in this market are not household names you'd have heard of, but they are part of large organisations. Several are owned by large US banks, such as Southern Pacific, Preferred and Future, while others are owned by UK high street lenders. Amber, for example, is owned by Skipton Building Society, Accord by Yorkshire Bank, The Mortgage Works by Portman and BM solutions which is part of Halifax Bank of Scotland (HBOS). Chelsea Building Society and Norwich & Peterborough Building Society offer adverse deals directly.

An expert mortgage consultant with access to the entire market should be able to find you a lender. Their expertise should save you time and money, as they'll shop around to find you the best deals from all the products which are available for people with adverse credit in the UK.