Due to increase in recent years in the number of people who have adverse credit and County Court Judgment’s on their credit files, there has been reluctance from lenders to give mortgages. A bad credit or adverse credit mortgage is the name given to a mortgage that is provided to individuals with a poor credit score or those who may have adverse credit history. These mortgages are sometimes referred to as adverse, impaired credit or sub prime mortgages. However, recent trends in the finance sector have now allowed it to be possible to get mortgages for those with adverse credit.
These are mortgage designed for people who are not qualified for a mainstream mortgage from the lenders. They are may be suitable in a different situation — just like, if you had already credit problems in your past or you may have a difficulty proving a regular or reliable income.
There are such situations are unfortunately increasingly common. Life changing status such as unemployment, divorce, sickness and also bank craft can cause you to miss making payments on your mortgage or other financial commitment. These things happen to many people at some stage in their lives, but once such problems are behind you, they should not stop you applying for a mortgage.
Lenders and brokers who are selling mortgages are regulated by the Financial Services Authority (FSA). These means that they have to follow comprehensive rules on how mortgage advice and information is provided. This also gives you important protection as a customer, including access to an independent redress scheme (the Financial Ombudsman Service) if you have a valid complaint about how your mortgage is sold or administered.
This guide is designed to give you information on adverse credit mortgages, and give answers to some common questions. It specifically concentrates on ‘adverse credit’ mortgages for people who have had financial difficulties in the past.
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