New Adverse Credit Mortgage Products

Some good news was released this week regarding the availability of mortgages for people with an adverse credit history.

If you have a minimum 20% deposit in place, mortgage options which allow for up to 5 defaults and 3 County Court Judgements being registered are now available. No monetary values relating to the defaults or County Court Judgements are applied, although acceptance is subject to applicants passing a credit scoring application process.

Previously, the most a lender would allow was 2 defaults and 1 County Court Judgement up to £2,500 in value within the last two years, so the new products represent a big shift in the adverse credit mortgage sector, and will mean that more people will now be able to proceed with a mortgage application where previously they may have been declined.

The new two year fixed rates start at the following rates:

Up to 70% mortgage – 4.99% fixed

70% – 75% mortgage – 5.39% fixed

75% – 80% mortgage – 5.69% fixed

For people with a 15% – 19% deposit, the previous adverse credit allowance of 2 defaults and 1 County Court Judgement up to £2,500 in value within the last two years, still apply.

There are other lending options available for people with a deposit of 40% which allow for a higher level of past arrears, defaults or even past bankruptcies or IVA’s.

To find out more about these new products and other mortgage options which may be available to you, please call or e mail us, and we will be pleased to provide further details.