Remortgage With Adverse Credit – Why Past Mistakes Needn’t Hinder Your Future Home Ownership
It’s easier than ever to borrow money – in 2007, the average consumer borrowing via credit cards, overdrafts and unsecured personal loans was £4550 while the average amount of interest paid by every household is £3525.
For most people repayments on credit cards, mortgages and other borrowings are an essential but manageable part of life. Being able to borrow money lets you buy what you need when you need without having to save for years and years.
It’s a fine balancing act to meet repayments every month and still have enough left over to live. A slight change in circumstances can throw this off balance. It’s easy to find yourself in a position where the debt repayments start to outweigh your living expenses – you may feel that the only way to get enough money for the basics is to borrow more money.
There are companies who are experts in helping customers get back on track – in our experience many people find themselves in debt through no fault of their own. Often redundancy, illness or traumatic and stressful events such as divorce or bereavement lead to credit difficulties.
Once you have missed a mortgage payment it can be extremely difficult to get back on track – especially if you have other credit problems. A single missed payment is enough to create a bad credit rating while more serious arrears will inevitably lead to repossession proceedings.
Similarly, when other creditors seek settlement on their bills due to non-payment, you could find yourself with County Court Judgements against you.
The bottom line is that CCJs, mortgage arrears and other debt problems can quickly lead to a bad credit rating – and once you have a bad credit rating you will find it extremely difficult to borrow money.
Even if you have cleared you debt and are now financially secure it could be extremely difficult to remortgage your house with adverse credit history.
The good news is that there is help available.
Most mortgage lenders specialise in what are called “prime” borrowers – that means they won’t consider applications from those with bad credit history. Essentially that makes it extremely unlikely that a direct application to a High St lender will be successful.
However there are mortgages for people with bad credit history. Even if you’ve been turned down elsewhere, the chances are you can be helped.
For starters, the specialist companies have a great deal of experience with customers with bad credit history – they know the stress it can cause and the impact it can have on your life. Whether you’re trying to get on the housing ladder for the first time or attempting to remortgage your home in order to clear your debt problems, they work to help you find a mortgage that will suit your needs.
Sub Prime Remortgage brokers work with a large panel of lenders who offer highly competitive rates and terms for those who need to remortgage with adverse credit history. Working with these lenders they’re able to create a package that suits your needs and can help you alleviate the debt situation almost immediately.