Adverse credit mortgages, often referred to as subprime mortgages or bad credit mortgages, are home loans designed for individuals with less-than-perfect credit histories. These mortgages are tailored to help people who may have experienced financial difficulties either in the past or currently. These credit issues can arise but are not limited to the following; missed payments, defaults, CCJ’s, Debt Management Plans, Debt Relief Orders, IVA’s or bankruptcy.

Here are some key points to consider when looking to obtain an adverse credit mortgage:

1. **Higher Interest Rates:** Lenders typically charge higher interest rates for adverse credit mortgages compared to traditional mortgages. This is because borrowers with poor credit are considered more of a higher risk, thus, to reflect their risk the rates charged to you can be higher.

2. **Stricter Eligibility Requirements:** Applicants when applying for adverse credit mortgages may need to meet stricter eligibility criteria, such as a larger deposit if you’re buying a new property or a more substantial income, to offset the risk for mortgage providers.

3. **Limited Product Options:** Borrowers with adverse credit may have limited mortgage product options. Fixed-rate, Tracker & Variable rate products are common, but the variety of available deals may be reduced.

4. **Rebuilding Credit:** Successfully managing an adverse credit mortgage can be an opportunity for borrowers to rebuild their credit scores over time. Consistently making on-time payments can demonstrate improved financial responsibility.

5. **Risks and Caution:** It’s essential for borrowers to be cautious when considering adverse credit mortgages. High-interest rates and fees can lead to significant long-term costs. Borrowers should explore all available options and ensure they can afford the monthly payments.

In summary, adverse credit mortgages serve as a means for individuals with poor credit histories to enter the housing market or remortgage to a better mortgage deal but they will often come with higher costs and risks. Borrowers should carefully assess their financial situation, seek professional mortgage advice through us and work toward improving their credit standing for better long-term financial stability.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.