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Why Do I Need A Bad Credit Mortgage?
By SeanH-9584
Bad credit mortgages
are much easier to obtain than they used to be. But just
how easy? This rather depends on why you actually have the
bad credit in the first place.
So what are the reasons why someone might need a bad
credit mortgage?
�In some cases, you could have problems with your credit
rating through no fault of your own. For instance if you
have just moved house, a previous occupant at that address
could have had poor credit. It has also been known for
people who shop around for the best deal to be penalised.
Every time a credit search is done, it shows up on your
credit record, and if you then don�t take up the offer, it
is assumed you have been turned down! If you are rejected
and you are sure you have never defaulted, ask to see your
credit record and get it corrected.
�Again, it has been known for quite well-off people who
are self-employed to show up badly in a credit search,
simply because they don�t have a 9-5 job! This shouldn�t
cause too many problems in getting a mortgage, but
you need to provide proof of your income.
�Lenders get twitchy if you�ve fallen into arrears on a
previous mortgage. It makes you seem like a less
good risk. You may still be able to get a standard
mortgage, not necessarily a �bad credit mortgage�,
but you may be excluded from the best deals.
�One thing that is looked at quite seriously is a county
court judgment (CCJ) against you. You get this if you
default on a repayment or debt to the extent that the
creditor has to take you to court and an order is made
against you. If you then don�t pay the money within
one month, it will be recorded as a CCJ against you and
stay on your record for at least six years. This will
seriously affect your credit rating and you will almost
certainly have to settle for a �bad credit mortgage�.
�Bankruptcy � some people opt for this when they realise
that they can�t pay their debts. It can be tempting as it
seems to be a way of making a new start with a clean
slate. However you could have your house and many of your
belongings repossessed in order to make partial payment to
your creditors. As you would expect, it has a very serious
effect on your credit rating and you may not even be
allowed a credit card for several years. You would
certainly have to settle for a �bad credit mortgage�
if you could get one at all.
The best way to start is by talking to an independent
mortgage broker. Be honest about your past problems and
the broker will be able to advise you whether you need a
bad credit mortgage and how to proceed.
Article Source:
http://www.articlemap.com
Sean Horton is a Director of Enhanced Wealth Limited who
are a specialist
mortgage broker offering expert advice on
bad credit mortgages
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