Bad Credit Mortgage Quotes

Dealing with CCJ's, Mortgage Arrears and Poor Credit

Unlike 25 years ago, it is no longer necessary to meet formal criteria before applying for a mortgage. Then, mainstream lenders would hardly consider advancing a loan unless the applicant had held an account with a building society or bank for several years, could establish a long-term employment background and supply proof of being in a secure, stable relationship, preferably married. Single people, especially women were viewed as far too high a risk for lenders to even consider, particularly if a background of poor credit history existed.

As society’s attitude has changed dramatically to the circumstances of individuals and to what was once the very real stigma of indebtedness, so too the mortgage lenders have altered their perspective on those borrowers who, for one reason or another, may have had a bad credit history and, as a result, a very low existing credit rating.

Perhaps this came as a natural development of widespread credit availability, with manufacturers realising that not only could they sell goods more easily and in greater volume if they allowed customers extra time to pay, but they could also gain profit on the additional credit terms available.

Mortgage lenders also began to realise that often bad debts were caused by circumstances or life events, such as divorce, illness, redundancy, increased self-employment and the abolition of student grants, rather than through any intrinsic financial unreliability in the individuals concerned. They realised too that, with the rigorous monitoring of financial statistics currently in existence, that in many cases the bad history may have been simply as a result of missing an occasional utility payment, which had led to a CCJ (County Court Judgement) being issued. And even bankruptcy, now becoming more and more widespread, was beginning to be seen as simply an acceptable expedient advised by an accountant in order to allow financial breathing space to a temporarily beleaguered business. But there was certainly sufficient proof to believe that it was possible to recover from these events and to re-establish good credit credentials.

But for whatever reason, the mortgage industry could not fail to be aware that to cut out the growing sector of the population who, at one time or another, had fallen into debt, would be to operate in a very restrictive market indeed.

As a result Adverse Credit mortgages and a whole range of services are now currently available to prospective borrowers, irrespective of any history of a poor financial background. In fact many well-known mortgage companies have now developed a dedicated portfolio of offers in order to the meet this growing demand. And even more are available through reputable mortgage brokerages.

It is understandable, however, that mortgage companies inevitably take some added risk into consideration, and loan rates may not always be the same of those for lenders with unblemished credit history. Nevertheless, because of the level of competition in this area rates are still likely to be very competitive and any added restrictions should be negligible. There is, therefore, every likelihood that those with a poor or bad credit history will succeed in finding a lender who will agree satisfactory terms with regard to repayment.