Bad Credit Mortgage with Poor Credit Rating, Turned Down

Mortgages for people with bad credit rating

It is estimated that as many as 1 in 5 people in Britain do not meet high street lending criteria and will experience difficulty getting a mortgage because of a poor credit rating. Are you one of them?

Many people struggle to pay bills and other commitments at some point during their lives, often in times of turmoil such as redundancy, bereavement or divorce. In some cases individuals can get a blackmark against their name, because they have been involved in a legitimate dispute over a bill.  

If you have missed a payment (defaulted) on a previous mortgage, personal loan, hire purchase or credit card agreement or failed to pay a bill, your credit file may be adversely affected. 

Most lenders will automatically run a credit check on anyone applying for a mortgage and something as minor as a missed payment on a book club could mean you have a poor credit score and cause your mortgage application to be declined.

If you have bad credit history such as CCJs, previous mortgage arrears, defaults on loans or credit cards, have been declared bankrupt or have no credit history, you may experience difficulty when applying for a mortgage with a high street lender.

If you have been turned down for a mortgage previously or feel that a standard high street lender may decline your application, all is not lost as there are a small number of specialist lenders who provide mortgage solutions for people who have experienced previous financial problems.

A professional mortgage advisor will be able to assist you as they'll know which lenders will be sympathetic to your situation and will give you impartial advice on the best mortgages for people with poor credit scores.

See the compare mortgages section for a summary of some of the bad credit mortgages currently available in the UK. For details on these and other special offers / exclusive products, simply complete the enquiry form to get a FREE no obligation quote. 

Sub prime market set to grow

British consumers have racked up a record personal debt mountain of more than £1 trillion. Industry experts believe a growing number of borrowers will be unable to cope with debts and as consequence will have their credit reports tarnished by late payments, defaults, county court judgements, IVAs and personal bankruptcy.  

What is known as the sub prime mortgage market (industry phrase for people with bad credit rating) is expected to grow faster than that of conventional mortgages due to the rising number of people hitting financial difficulty.

Figures from Research company Datamonitor reveal that the gross value of lending in the poor credit mortgage market rose by 28% to £24.6 billion in 2006. They anticipate the market will keep growing by 4.7% each year to reach £31.5 billion in 2011.