Bad Credit Mortgages

Your credit rating is based on your personal history of borrowing, and will include details of your previous credit and store cards, car payment plans, mobile phone contracts and personal loans. Unfortunately if you miss any repayments it will be noted in your credit history, and if you have a bad credit rating you may find it difficult to apply for credit in the future. This could mean that you will not be able to apply for the good deals on credit cards or loan rates, and if you have a very bad credit rating you could be refused loans and mortgages outright.

There are some mortgage companies that do specialize in providing secured loans for people with a poor credit history, but often these come at very high rates of interest, and with the better deals you will most likely be required to put down a significant deposit. Therefore if you do have a poor credit rating and are still struggling to repay your current debt, taking on a mortgage can often make things even worse. As secured loans, mortgages are tied to the property and if you miss repayments your home could end up being repossessed.

If you are thinking of taking out a mortgage despite your bad credit rating, then it is important you get some professional advice to help you manage your debt. You can get mortgage information from FSA (Financial Services Authority) which is an independent non-governmental body that provides impartial advice on all aspects of finance for consumers, including all types of mortgages. You can visit their website at moneymadeclear.fsa.gov.uk or call their Consumer Contact Centre on 0845 606 1234 which is open 8am and 6pm Monday to Friday. You could also try the Council of Mortgage Lenders, who have a good website that explains about mortgages, and the various types of deals that are available from fixed rate mortgages to tracker mortgages.

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