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What is an 'Adverse Credit'
history?
When applying for a mortgage or a remortgage, lenders run
a credit check on you. This means they look into your previous
credit history to establish how reliable you are in repaying
sums of money. If you have defaulted on previous loans, have
CCJ’s (County Court Judgements), arrears or have experienced
bankruptcy in the past you will have what is known as adverse
credit.
Adverse credit, otherwise known as bad credit or poor credit,
will make it increasingly difficult to get a mortgage. Lenders
will be reluctant to lend large sums of money to people who
are seen as ‘unreliable’, with a high risk of
not recouping the borrowed money. As a result lenders will
either refuse your application, or charge higher rates of
interest for adverse
credit mortgages than they would for standard mortgages.
Getting rid of adverse credit
Many people with adverse credit find themselves in the ‘bad
credit trap’. They have sorted out any financial difficulty
they may have experienced in the past, but still cannot get
a mortgage because of their poor financial track record. But
because they are unable to borrow any money they are unable
to build any ‘clean’ credit history.
Once you have obtained a mortgage, if you keep to the lenders
agreement and make your repayments on time, after three years
your credit history will no longer be considered adverse.
This means that you should be able to switch mortgage lenders
(otherwise known as ‘remortgaging’), and enjoy
considerable savings on your monthly repayments.
How do I get an adverse credit mortgage?
A first useful step you could take is to complete
our free, no obligation, secure enquiry form.
Whilst many high-street lenders will refuse your application
for a mortgage if you suffer from adverse credit, there are
many specialist lenders who focus on adverse credit mortgages.
Otherwise known as ‘sub-prime’ lenders, these
lenders are your best chance of attaining a mortgage and our
specialist brokers have access to all of them and once they
understand fully your circumstances and what you are looking
to achieve, they will research the market and help you choose
the remortgage or mortgage that is right for you.
Simply complete the short form below and one of our mortgage
experts will be in touch. The forms are free to complete and
do not imply any obligation on you whatsoever.
Alternatively, call 0870 0434293 or text
'Remortgage' to 0790 586 3259
and we’ll call you back to discuss your options. Feel
free to specify a preferred contact date and/or time.
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