What is an adverse credit mortgage?
Adverse credit mortgages are suitable for people who are unable to obtain a mortgage with traditional high street lenders. This may be because you have missed mortgage, loan or credit card repayments or have had defaults or CCJ’s registered against you for example.
The lenders still offering adverse credit mortgages require a minimum of a 15% deposit to consider an application and for some schemes the deposit requirement may be as high as 50%.
The degree of adverse credit allowed by the lenders can vary considerably, but we still have access to mortgage options that allow for defaults, County Court Judgements (CCJs), mortgage or loan arrears, bankruptcy or voluntary arrangements (IVA) with creditors.
Having an adverse credit product option means that borrowers who are not able to get a mortgage from a traditional high-street lender may still be able to get the mortgage they need to buy their house.
How do I obtain a copy of my credit file?
The two main credit reference agencies in the UK are Equifax and Experian so if you have not already done so, we would request that arrange apply for and download a copy of your credit file. The website addresses are www.experian.co.uk and www.equifax.co.uk
Both Equifax and Experian have an option on their website for you to order a copy of your credit file for £2 if you do not want to commit to a monthly subscription.
Once you have accessed your credit file you may forward a copy to us via an e mail attachment and we can then start the search to identify a suitable mortgage product for you.
This will help to identify a mortgage lender who will consider your application based on your credit profile.
How can a mortgage broker help me find an adverse credit mortgage?
At Selective Mortgages we are able to assess all mortgage applications on an individual basis. If you have had adverse credit registered against you we have access to lenders who deal only with mortgage brokers and not directly with the public.
We have detailed knowledge of the individual lenders’ criteria and we can match up your circumstances and requirements to access the most appropriate lending option available to you.
Following the recent launch of the Financial Conduct Authority’s Mortgage Market Review (MMR) many lenders have implemented strict new lending criteria and affordability assessments and we are experienced in dealing with these requirements and can guide you through the application process with the minimum of delay.
What deposit amount do I need to apply for an adverse credit mortgage?
We have access to lenders who can consider certain levels of adverse credit being registered with a 15% deposit. If you are able to provide a higher level of deposit this would normally result in you being able to secure a lower interest rate or it may allow us to access other lending options where the lender requires a higher level of deposit to consider your application.
What are the interest rates for an adverse credit mortgage?
The interest rate offered to you will depend on the level of deposit you are able to provide and other factors such as the level of adverse credit registered against you. Current fixed rate start from as low as 3.44% but all applications are assessed individually and not everybody will be eligible for the lowest rates. If you have a mortgage enquiry please call us and we will quickly be able to assess the likely terms available to you.