For
bankruptcy go to Bankrupt
For CCJs go to County
Court Judgment
For missed payments go to Mortgage
Arrear
Credit
Crisis Subprime
commercial finance
Bad
Credit History
Bad
credit lending also can be known as a poor credit history
loan, credit
impaired mortgage, adverse
lending and sub-prime lending. This is not ideal as specialist
lenders will have higher interest rates then prime lending.
This can potentially cost you a lot of extra money. Specialist
lenders often will have a higher early repayment charge
and long tie in periods so it is important therefore to
source the best deal to suit your circumstances.
When
you suspect your credit
history
is impaired a broker will need to have an up to date record
of your credit file in order to source a mortgage. From
this information the broker will research which are the
most suitable deals to suit your criteria. This can be
acquire either by yourself contacting the credit agencies
(online downloads are available at Experian) or a broker
can with your permission run a credit check.
The
adverse credit lenders may have a rating system to ascertain
the interest rate. Which unless is a fixed rate which
is not always available will be a variable rate of the
libor rate (similar to the bank base rate being reviewed
for change approximately every three months) plus the
calculated interest loading.
This
loading may generally calculated by the addition of interest
penalty points, which depend upon the degree and amount
of bad credit. So for example there will be points for
the number of county court judgments, the amount outstanding,
satisfied or unsatisfied and the age of the CCJs. Or if
it is mortgage arrears (poor payment history) then again
points may be awarded for the amount in total, and the
age of those arrears. These points are then added up to
give the total interest rate loading figure.
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