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Get A Mortgage With Bad Credit
By James Miller
In the old days if your credit history was less than
perfect, the only mortgage you would be offered would be
one with extortionate interest rates from a shady broker.
Nowadays, there are more sympathetic lenders who will
offer you a bad credit mortgage without charging you
sky-high interest charges. And because there are more
lenders out there now offering these non-standard
mortgages, it has driven the interest rates on them down
which is good news!
The term �Bad credit� can be anything from County Court
Judgements (CCJ�s) on your credit file to something like
having missed a mobile �phone payment or made a few
mortgage payments late.
More and more people now have a �bad� credit file. Rising
inflation and credit companies making it easier for people
to borrow means that just because you have a bad credit
file, you are not rubbish with money!
So, what can you do to get a mortgage, without being
ripped off by greedy lenders?
First of all, if you are considering using a mortgage for
debt consolidation, do bear in mind that it will probably
cost you more in interest in the long run. And also the
debt will be secured against your home, so you must really
ensure that it is affordable to you.
And when it comes to choosing a mortgage, do not apply for
the first mortgage that you see. TV adverts saying that
they can help people with bad credit are all very well �
but many of them charge as much as a 3% fee to arrange a
sub-prime mortgage. So, on a �150,000 mortgage, they get
�4,500!
Get independent advice from an independent mortgage
specialist as well as doing your own research. �Bad
credit� no longer has the financial stigma it used to, so
hold out for the right deal for you.
How the web can help you if you are looking for a bad
credit mortgage
If you have a poor credit history, finding a mortgage
specifically for people with bad credit can be difficult.
And even if you do find a mortgage, how do you know that
it is the right one for you?
Using the internet can help. There is tons of information
on there relating to bad credit mortgages such as free
guides, as well as access to providers of bad credit
mortgages.
Going online also allows you to compare multiple providers
so that you can look at all the product features and
benefits to decide whether it is right for you.
There are
also websites that accept online mortgage applications and
there are hundreds that offer free and immediate online
quotes. This means that you can see how much you can
really afford to pay out for a mortgage.
Steps to improve your credit rating
If you have recently applied for credit and have been
turned down or you have been offered credit but at higher
interest rate than advertised, then this is probably
because of your credit rating.
Even if you never miss payments or do not have any debts
such as a loan or credit card, you could still have a low
credit rating.
This is because you can be penalised if your credit record
is empty. Prospective creditors like to see positive
entries on your credit fie and if you have no financial
history, they are unable to judge how well you manage your
credit.
The solution is to develop your credit file by adding
positive entries on your record. Running bank and savings
accounts as well as paying your mobile phone bills on time
are a good start as are well managed credit card and store
card accounts.
If you do not have any credit accounts, then gradually
apply for them. Don�t apply for lots of credit all one go
as this will look like you are in financial distress.
Instead, get one card at a time with a low credit limit
and pay the balance off in full every month. Open up a
bank and savings account. And pay your bills on time �
even the small ones!
Start building a financial history gradually and over time
you will find it easier to get credit, and at a better
interest rate too.
Article Source: http://www.articlemap.com
JJames Miller is a freelance writer specialised in
consumer credit, covering topics such as how to deal with
bad credit, mortgages and insurance. He aims to
help people navigate the financial industry.More
information :
bad credit mortgage
Credit Report Explained
How
to improve you credit record
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