Home owner debt consolidating mortgage
To find out what you’re eligible for and which mortgages are best for you please make an application, ask us a question above, use the live chat or give us a call on 08.
*For debt MGMT: Debt management plans sometimes don’t effect your credit file, in these instances some lenders are happy to consider an application.Below I outline the main factors that will effect your credibility: Loan to value (LTV) Having no equity is an issue for lenders because if you don’t repay the mortgage, they have to try and sell the property to get their money back, and if your loan was 100k and the house 100k (100% LTV) the chances of them getting full price and then covering their costs are nil.In fact, at 90k (90% LTV), the chances of covering all costs are slim.Note: Mortgages with bad ‘credit rating’ relate to the same thing as ‘credit score’.Credit history (severity & date) Mortgages for people with bad credit history are most impacted by the type, amount and date of the credit issues.Usually, a borrowing limit of 4x salary is a common figure, so if you earn £20k, you could borrow £80k, although some lenders go to 5x, and at times more for higher earners.
Assets To get mortgages with bad credit, if you have other assets, such as equity in other properties, businesses, investments, savings, then these can show a lender you have other means to support yourself and their loan, should you fall into trouble.
It may shock you to hear, but different lenders use different credit reference agencies.
They may share their records to make sure their information is accurate, but often this doesn’t happen.
The specialist advisors working with us have arranged mortgages for people with poor credit in the following circumstances: The lenders’ decision on whether you’ll be eligible for a bad credit rating mortgage is all based around risk.
The better you look as a borrower, the better your chances of acceptance.
Bad credit mortgage loans are not as freely available as they were, but things have started to improve, especially over the last 6 months where several new lenders have returned to the market.