Adverse Credit

This type of loan is also known as bad credit, sub-prime and non-status mortgage. If you have had problems in the past with defaults, county court judgements or non payment of mortgage, rent or bills then it doesnít mean that you canít get a mortgage. There are many lenders and packaging companies that specialise in this area. No matter how bad the situation appears there is normally someone who is prepared to lend to you. There may be extra restrictions on the mortgage such as longer periods where you are tied in to the lender or higher rates charged, they may require more deposit and higher fees. This is because they consider there is a higher risk of non-payment.

If you already hold an adverse credit mortgage and have kept up the payments for at least 12 months it may be time to switch to a mainstream lender mortgage as this could save you some money.

It is estimated that 1 in 4 people have had some form of bad credit in the past so if lenders only offered mortgages to people with a clean credit record then they would be cutting out a significant number of potential clients.