For
bankruptcy go to Bankrupt
or Good vs Bad Credit
Debt Collector
For CCJs go to County
Court Judgment
For missed payments go to Mortgage
Arrear
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.
The
following APR relates to the above products only.
THE OVERALL COST FOR COMPARISON IS :-
8.9%
APR
The actual rate available will depend upon your
circumstances ask for a personalised illustration. |
As
mortgage brokers we have access to the sub prime lenders
from the market as a whole and may be offered special
exclusive deals only available to mortgage advisers,
so please contact us
for friendly assistance.
