Finding lenders for adverse credit cases
....and why you need to be very careful when making an enquiry
In the past few years an increasing number of mortgage brokers and lenders have started specialising in bad credit (aka "adverse credit") cases.
This is simply because there's good money to be made from the higher interest charges that people with a bad credit record have to pay for their mortgage.
More recently the "normal" well known high street type lenders have started to get involved in this area. This might be because many more of us have developed bad credit ratings - thanks to the explosion in the UK's lending culture. It's almost certainly because the banks are under pressure to produce ever higher profits.
you could go to your existing bank and ask them about any
such mortgage packages they might do.
However you must be very careful when making any enquiry to a bank or mortgage lender.
Lenders will often take your enquiry as a "mini application". They will do a quick credit search on you before answering you - even while you're on the phone.
The problem with this is that their check will be seen by other lenders who you should also be approaching (you should always shop around and get three quotes when getting any type of financial product).
Lenders - including your own bank - will often assume that an enquiry to a rival means you were turned down - and not that you are in fact carefully shopping around and rejecting the bad deals.
What to do?
the best way around this significant problem is to ask an
bad credit mortgage adviser.
They will know immediately which currently available deals are best for you. They will also know how likely you are to be accepted by the lender. So you will be able to avoid the rejection spiral.
The best way to find this type of professional is by word of mouth recommendation. If you can't find one in this way, we can link you with an independent, regulated one we know. This is a free service and there is no obligation at all to proceed with any deals suggested by them. Click here if you want this now.
Whatever you decide to do, just make sure that you shop around as there's a big market out there.
Don't just take the first offer you get.
Fill out our quick form to speak to an FSA qualified mortgage adviser
£6,000 and £15,000
on your Mortgage
how much you could save
Read On / Mortgage BasicsWhat is a mortgage? A basic summary of the rules The choices you need to make
How much can you borrow?
How do you prove your income?
How long are mortgages usually for?
What will happen to interest rates?
Read On / Mortgage GuideHow to Choose your Mortgage
Types of Mortgage Remortgages
Where to Find your Mortgage
Getting a Mortgage in Principle
Costs of a UK Mortgage
Your Mortgage TOP TIPS
A to Z all UK Mortgage Types