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FAQMYMORTGAGE.CO.UK > MORTGAGE GUIDES > CREDIT PROBLEMS

Credit Problems Mortgages

As use of credit has grown in recent years, increasingly more people have accumilated problems with their credit.

Until recently most mortgage lenders had been relaxing their criteria on credit problem mortgages. With even some high street lenders trying out 'sub-prime' mortgages.

But following the credit crunch everyone has tightened up their position on credit problems.

The most important factor whether you will be able to get a mortgage, or what the rate will be, is going to be the type of credit problems you have had.

Types of Credit Problems

The more serious the problems the higher the cost of the mortgage:

  • Very Minor: You may be able to get a mortgage with a high street lender. Though they might offer you a lower then normal loan to value. You might be in this class if you have a small county court judgement or default (below about £250) or if you have a larger one two or three years ago. It will help if you have paid these off.
  • More Serious If your credit problems are more serious you can still probably get a mortgage but the costs will be a lot higher and the loan to value you can get will be lower.

If you have had credit problems it is particularly important that you speak to more than one adviser, because each advisers will not have access to all the credit problems lenders, so they may not be able to tell you about the cheapest options for you.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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