|
|
This type of mortgage is designed for those people who are unable to secure
a regular mortgage due to a poor credit history and so an unfavourable credit
rating. Finding yourself in such a position is easy, missing payments on
previous loans, having long periods of unemployment or having CCJs can all
give you a bad credit rating and so make securing finance difficult. Although
you may be declined a mortgage by the mainstream lenders, there are specialist
lenders who will cater for your needs.
Adverse Credit Mortgages:
Adverse credit mortgages make it possible for those refused elsewhere to
secure the financing they need in order to fund their house purchase. The
main differences between these sub-prime mortgages and regular forms are
the interest rates charged and the deposits required. Because the lender
is taking on board more risk of loosing their money, or facing additional
costs in order to gain it back, the overall cost of the mortgage to you
will be higher which is shown by the higher APR of this type of mortgage.
Adverse credit mortgages will typically also require a larger deposit, sometimes
as much as 25% of the value of the home being bought.
|
|
