Contrary to popular belief, there is no such thing as a “credit blacklist”. If you have a particularly bad credit score you might find yourself being rejected for a mortgage from a high street bank, however, each lender has their own methodology, procedures and lending criteria meaning one might turn you down, while another ones, which quantity is growing nowadays, and they will accept your application. Adverse credit history can mean a little more legwork to get an approval for a mortgage loan, and especially to get a decent interest rate. With more lenders in the adverse credit market the competition has helped to create better opportunities for people to get a good deal based on their circumstances. With hundreds of deals to choose from we recommend that you get advice on your mortgage options.

The research is out and it shows that demand for an adverse bad credit mortgage loan is high in the 30 to 50 age group. People in this age group are much more likely to have experienced a life changing event that can adversely affect their finances. This might be why they need an adverse bad credit loan mortgage. Also research showed that the adverse market was estimated to be worth £25bn in 2006 and is expected to grow in the next few years, mainly due to unprecedented levels of consumer debt. More and more people are likely to have tainted credit records due to increasing amounts of arrears, CCJs and the increasing use of IVAs and bankruptcy proceedings. Levels of consumer debt through credit cards, loans and store cards are at record levels. The Office of National Statistics claims the average person is £5,330 in debt – an increase of 50% in five years. Not that adverse credit should be confused with debt. Adverse credit happens when people default on debt repayments.

Adverse or bad credit mortgages has advantages and disadvantages. Although loans are only available up to 75% the mortgage allows even the most unlikely of candidates to get a foothold on the housing ladder. It can make sense to clear debts and get your credit rating back up to scratch before taking on the debt of a mortgage. However the interest rate is not competitive and comes with a three-year tie-in. If in conjunction with shared ownership, you will still need to find 25% of the proportion of the property you are buying as a deposit.

Adverse bad credit loan mortgages lenders offer a range of products to help people with any of the following circumstances raise finance for a property:

People with IVAs or CCJ’s against their name

Someone with mortgage arrears

People who have adverse or bad credit against their name

Borrowers who have been declared bankrupt

People with defaults looking to borrow

The options open to you will depend on whether you fall under the light, medium or heavy adverse classification and what amount of deposit you have available to purchase your home. On the whole, the grimmer your scenario gets the higher your interest rate and deposit required is going to be.



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