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Gone are the days when having a
blemished credit history prevented you from taking out a mortgage.
Nowadays there are lenders who can help.
Getting a mortgage was a whole different
ball game 25 years ago. In order to prove your reliability you often had
to have a During the past decade a huge industry sprung up to meet the mortgage needs of sub prime or non standard borrowers, that is people who have a poor credit rating, low credit score and those who don't fit conventional lending criteria such as the self employed and people employed on short term contracts. Adverse credit mortgages and remortgages became available to people with a chequered financial history, from those who have simply missed payment on a utility bill to people with County Court Judgements (CCJs) or even bankruptcy against their name. The attitude of lenders towards people with a bad credit rating changed because they realised these individuals were not necessarily going to default on their mortgage repayments. Quite often the causes of a poor credit record can be attributed to unfortunate events such as redundancy, illness or divorce which occur through no real fault of those involved. Until recently, many high street lenders embraced the credit impaired market and developed dedicated sub-prime lending arms of their business. For instance UCB Home Loans is owned by Nationwide, and Platform, owned by Britannia Building Society. You may not have heard of some of the lenders as their products are only accessible through mortgage brokers. GMAC-RFC, for example, is part of the General Motors group.
Whatever
financial problems you may have had in the past, there may still be
lenders that are happy to help you.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT. |
savings account with your local building society for a few
years before they'd even consider you for a mortgage. It certainly
helped if you were a married couple and deemed to be 'stable' members of
society. If you were a single woman, your chances of securing finance
were remote and people with a
history of bad credit were too great a risk for the mainstream lenders,
as they confined themselves to lending to people with solid jobs and perfect
credit histories.