Adverse Credit Mortgages | Adverse Mortgage
Until early 2008 many lenders would process mortgages where the applicants had a poor credit rating. These mortgages were subsequently packaged together and sold as investment vehicles. The mortgage crisis that engulfed the US at the same time all but stopped this practice and now only a few very specialist lenders entertain applicants with imperfect credit. World of Mortgages however have close links with these remaining lenders and (subject to status) can arrange a mortgage for those fitting the required criteria. If you would like a bad credit remortgages quote to release some equity to consolidate your debts or for any other reason then please follow the link.
If you have suffered County Court Judgements (CCJs), defaults, convictions, bankruptcy, mortgage arrears or for any other reason you have a poor credit record, then your mortgage may be considered an Adverse Credit Mortgage.
Interest rates on adverse credit mortgages can be higher than the normal rates as the lenders perceive that there is a higher risk by lending in such cases. Interest rates will reduce as the “loan to value” (LTV) ratio reduces.
Lenders will typically consider lending up to 75% of the value of your property – depending upon your particular circumstances.
If you have been unfortunate enough to have suffered CCJ’s or any kind of bad credit you may find it difficult to find a lender who is willing to accept you. There are a selection of bad credit mortgages available for people who have a bad credit history or CCJ’s. Some lenders will decrease the amount of interest on your adverse credit mortgage as you pay off more of the total debt. It is also very important to realise that adverse credit mortgages can place your home at risk if you don’t keep on top of payments.
The amounts drawn down are added to the amount secured on your home and interest is charged on the amount outstanding at any given time. This means that if you only draw down half of the amount available you will only pay interest on the half you have taken out of the Equity Release plan.