Question:
How is a bad credit remortgage different to a normal remortgage?
Answer:
The main difference is that bad credit remortgaging is intended
for people who either have bad
credit ratings or are experiencing problems managing their
present debts.
These
borrowers require specialist mortgage deals, as most high street
lenders will not give them mortgages.
Question:
Can I get a bad credit remortgage however bad my finances are?
Answer:
Although specialist bad credit mortgage companies are very flexible,
there are some restrictions:
You
must be able to afford the new monthly payments
You
must have enough equity in your home to cover the debts you
want to consolidate (if any)
If
you have a bad credit rating, you may be required to provide
proof of your current income and outgoings
Question:
Do bad credit remortgages have much higher interest rates than
mainstream mortgages?
Answer:
Interest rates are usually a little higher, due to the increased
risk of you being unable to keep up with your repayments.
However, lenders are much more flexible than they used to be,
and interest rates are often not that much higher than on the
high street, particularly if you can show that you have put
your money problems behind you.
What
you do want to watch out for are extra fees
you might be charged either by the lender or the broker.
People
who have bad credit might feel more desperate to get any deal
in place. And there are people out there waiting to exploit
that situation by over charging.
Simply
make sure you shop around. Always get three
quotes - but tell each broker you do not want your enquiry to
go on any lenders records. This would be unlikely but the fact
you have asked will show you know at least a little about your
situation. This will make them think twice about trying to charge
you some ridiculous fee.
Question:
Will having a bad credit remortgage and keeping up with the
payments help improve my credit rating?
Answer:
Yes, most definitely.
If your other debts are paid off and you keep up
with your remortgage payments each month, your credit rating
will gradually begin to be repaired.
Making
regular repayments on a loan or mortgage is one of the best
ways to improve your credit rating.
Bad
credit concerns? Simply ask a bad credit mortgage
expert.
It's free and completely confidential.
Simply fill out the form below
