An adverse or bad credit history can include arrears and defaults on your existing mortgage loan or rent, C.C.J's (County Court Judgements), I.V.A's (Individual Voluntary Arrangements), bankruptcy, repossession order, and any one of these will result in your having a bad credit record which can lead to difficulties when trying to re-mortgage through the usual High Street lenders. You may well have found yourself with bad credit due to circumstances. It can happen to anyone - there is so much credit being offered nowadays it is easy to over borrow, or your personal circumstances may have simply changed. Whatever the reasons for having a bad credit history there are ways that you can help yourself and sometimes lower your monthly payments in the process. For instance, you may decide that you want to consolidate all of your borrowing so that you can pay off smaller loans, especially any credit card accounts, as these generally charge a higher rate of interest. You will be surprised to see just how much money you could end up by saving each month if you take advantage of loan consolidation. There are many professionals including some top quality sub-prime (a sub-prime lender is one who deals specifically with mortgages that are not standard, ie. an adverse credit mortgage, or a self certified mortgage)lenders. When you are looking into a bad credit mortgage, or loan consolidation you should speak to a mortgage broker or advisor that specialises in this area, as they are totally experienced in this particlar field. It is really important to ensure that you give your advisor all the facts relating to your financial position. They will then have all the information they need to work out the best bad credit history mortgage or consolidation loan for you, and this will be based on your own personal adverse credit history. It is easy to 'gloss over' certain facts when you are running through your situation with someone who is trying to assist you, but you will only cause yourself more problems in the long run if you are not totally honest and declare all of your missed payments, ccj's etc. Without full and complete details your advisor is not going to be able to advise you properly. If you do not give your advisor complete details he or she will go ahead and source a loan or mortgage for you which may not actually be suitable, and of course they will be quoting you repayments on this option. Once your full bad credit history becomes clear (which it will with the searches they will undertake), your advisor may well have to alter the options he suggested, and this could lead to an increased monthly payment which you were not expectng. So although it can be hard to go through all this personal information, remember that the person you are talking to is used to this type of situation and will do his best to help you. Please be totally honest and then the advisor will be able to give you the correct facts and figures which will be based on your personal circumstances. To find a broker or advisor you can do quick search on the internet, or alternatively visit a local company. Remember that just because you have a bad credit history, or have made just one financial mistake in the past, this does not mean that you are not entitled to a choice in the type of mortgage, and in the company providing it. You can still apply for and receive funds for a bad credit mortgage, as well as bad credit re-mortgages, and also for loan consolidation. Do think carefully before securing debts against your home. Your home may be repossessed if you are unable to keep up repayments on your mortgage. |
