Adverse credit mortgages rarely refused

It is rare for someone with a bad credit record to be completely unable to obtain a mortgage, one expert has advised.

Earlier this week, there were reports suggesting that a credit crisis is on the way, with analysts pointing to such facts as Barclaycard refusing more than half of all credit card applications as evidence.

However, Mike Pendergast of independent financial adviser Zen Financial Services says that the mortgages market should not be significantly affected and will almost certainly not become a closed shop for people with a bad credit history.

"Most lenders will do adverse mortgages which are similar to a normal mortgage but they''ll charge a bit more in terms of interest or arrangement fee," he explained.

Prospective mortgage borrowers may be pleased to know that analysts are predicting that the interest rate is going to come back down in the near future.

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