Adverse Credit MortgagesIf you are unable to take a 'prime' mortgage witha mainstream lender due to credit problems, then do not panic as there is help to be found. Many people are in your situation because they do not fit normal lending criteria. However, there is a solution: you can take adverse credit mortgage (sometimes known as a non-conforming mortgage, bad credit or subprime mortgage) until you are back ontrack.
What is categorised as subprime or non-conforming?
'Non-standard subprime' borrowers fit a wide range of categories: you may have a bad credit history, mortgage arrears, CCJ's, do not have a bank account, have moved around a lot etc. Because you do not fit the normal criteria you will be considered a higher risk, which means in turn that the interest rates charged for subprime mortgages will be generally higher than normal rates. The current typical APR is 8.04%.
Will I always need a subprime mortgage?
You may be able to return to the mainstream mortgage market and get a lower interest rate when you have demonstrated to these lenders that the problems you had have been overcome and you are no longer a high risk client.
Where can I get subprime advice?
At Access Mortgages Ltd, we can offer expert advice for non-conforming borrowers. Which can be a big help when trying to take the first step towards reorganising your finances.