Poor Credit Mortgages

A 'Poor Credit' Mortgage has also been called an 'Adverse Mortgage' or a 'Sub-Prime Mortgage' in the past, and generally means a mortgage scheme for those who have had credit problem in the past.

What type of Credit Problems?

There can be many reasons that anyone has credit problems, but they would include :BankruptcyIVACCJ's (County Court Judgement)DefaultsMissed PaymentsArrears
This is primarily with credit agreements such as loans, credit cards and mortgages, but more recently this will also include payments to mobile phones, car and home insurance, and any budget payment plans with some Utility companies.

The more issues you have, the less chance you have of getting a mortgage. However if your issues are historic, some lenders will exclude from assessment any problems from 3 or 4 years ago.

We have seen a small number of specialist lenders return to the Morgage Market, exclusively through Mortgage Brokers such as Easyswitch Mortgages. However, the lenders will be very specific about their requirements, so specialist help and an assessment of your credit file is essential to see whether a mortgage can be found for you.

Credit Score Issues?

A Credit Score is somewhat different to a Credit File  - the latter is about the information held about you and how you have paid your monthly comittments, however even if your file is complete and has no 'issues', you may not qualify for a mortgage due to your Credit Score.

A Credit Score is calculated from the information you complete on an application form for any type of finance. Each Question is given a score based on the answer you give, so for example someone who has lived at a property for 10 years will get a better score than someone who may have lived at the same property for just 12 months. Each questions score is added together, and a lender will compare this score against the minimum score it requires for those circumstances. If you score sufficiently, you will get the mortgage. If your score is short of the minimum required, then you will get a decline. The score might change depending upon the size of deposit, so the minimum Score for a 90% Mortgage will likely be higher than a 60% Mortgage.

This doesn't mean you have bad credit, but your circumstances are just not in your favour for what you need to get a mortgage.

We have a new range of mortgage lenders who will assess clients' without a Credit Score assessment - criteria and requirements may be more limited than normal, but we are confident we can help most clients who have a 'Credit Score' problem.

Your property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
 
If you are considering any debt consolidation - Think carefully before securing other debts against your home.
 
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
 
We normally do not charge any fees for our mortgage advice as the majority of mortgage lenders will pay us a procuration fee for our work. We do offer a fee-based service should you prefer, which will cost no more than 0.35% of the mortgage advance. Any mortgage procuration fee would then be rebated to you on completion. Some lenders do not pay a procuration fee, so we will need to charge you a flat fee for our advice and administration, typically £499. We also reserve the right to charge an administration fee for mortgage applications below £100,000, to ensure that we can earn a minimum of £500 from a combination of commission, fees and other income from a mortgage application. Please ask us for more details.

We can deal with our clients using our Online Mortgage Service, by telephone or face to face. By using our Online Mortgage Service you accept that our Independent Mortgage Advice is based upon the information you have provided us.

Easyswitch Mortgages and Easyswitch Insurance are trading names of Essex Mortgage Centre Limited. Essex Mortgage Centre Limited. Registered office : 3 Warners Mill, Silks Way, Braintree, Essex, CM7 3GB. Company Registration Number 6009105, registered in England and Wales.
 
Essex Mortgage Centre Limited is an appointed representative of Mortgage Next Network Limited, which is authorised and regulated by the Financial Services Authority in respect of mortgage and insurance mediation activities only. Mortgage Next Network Limited is entered on the FSA register ( 300866)