Ever since the bad credit mortgages fiasco that blew in from America the back end of last year, the world’s economy has been in turmoil. Bad credit mortgages or sub prime mortgages as there more commonly known in the states have been headline news.

Recent fears over increasing household bills have put the focus on the amount people are paying for their mortgages. A survey compiled for the BBC, found a 35% rise in mortgage queries in January and February compared with a year ago. Household bills rising also contributed to 215,000 new debt problems taken to the service in January and February. But the figures also showed that credit card debt problems were down by 9%.bad-credit-mortgage-improve-credit-rating.asp                

The Citizens Advice bureaux said that more than a 3rd of it’s enquires are realated to bad credit mortgages problems. Mortgage arrears are the most common problem people will be facing in 2008.  

If you have a bad credit mortgage seek advice from your broker to see if you can remortgage and reduce your monthly payments.  

Anyone facing problems with paying their bad credit mortgage should seek advice immediatley from there lender .

You first need to know what your credit rating is. Armed with this information you stand a better chance of ensuring you get the best bad credit mortgage. It’s a mine field out there, knowledge is power. 1 in 4 people have a bad credit mortgage.

Understanding the basics have you got had any of the following bad-credit-mortgage-check-credit-files.asp

CCJ county court judgment

Defaults or late payments

Mortgage arrears

There are also other reasons for needing a bad credit mortgage loan. These are all generally called adverse credit history though the specifics may change depending on where in the UK you have lived. Arrears on rent payments, arrears or defaults on loans, decrees (in Scotland), County Court Judgements (CCJs), bankruptcy and individual voluntary arrangements (IVAs) are all reasons why someone might need a bad credit home mortgage loan. bad-credit-mortgage-deals.asp

If so you will probably have to have a bad credit mortgage. You shouldn’t worry what you now need is to do get the best bad credit mortgage available to suit your circumstances. Once you have your bad credit mortgage sorted you then need to live within your needs and build your credit rating back up to a level where you will be able to remortgage away subject to penalties and fianancial benefits. Once you are back on track you will then be eligible to get a mortgage from the high street lenders. This is where the best mortgages are.

For a long time there have been calls for free advice funded by levies from companies regulated by the Financial Services Authority. More so now with Bad credit mortgages and 100% mortgages being a regular topic in the news due to the current changes in the world economy.  

A report conducted on by Thoresen Review of Generic Financial Advice, commissioned by the government, suggests a £12m two-year pilot project.

It said a telephone; internet and face-to-face advice service should be funded by the government and by levies from the financial services industry. 

Otto Thoresen, the head of the financial services firm Aegon, was asked by the Treasury to design a national money guidance service. His review suggested that people would use such a sales-free service for significant life events that affect finances, such as starting work, buying a house, having a baby, divorce or retirement.

Many first time buyer mortgages now require a deposit of between 5 and 10%. Some lenders are insisting more stringent credit checks. A minor change in your credit report in the wrong direction like a late or missed payment on your credit card is likely to see you declined for any of the best mortgages available.

The Citizens Advice Bureau has gone on record saying there service is busting at seams. Good quality debt advice should be available to everyone.

Bank of England has cut rates in an attempt to keep the economy moving. The US Federal Reserve has recently cut rates from 4.25% to 3%. Anyone looking to remortgage can expect to get a better deal especially some one with a bad credit mortgage.

It will be a welcome cut for homeowners and anyone arranging a first time buyer mortgage as energy prices are increased, and Council Tax rates are set to rise in certain areas of the country.  

The Woolwich is one of the first big Lenders to announce it will be cutting its Standard Variable Rates (SVR) by the full 0.25% following the Bank of England’s announcement. This has an effect on anyone on a base rate tracker mortgage.

A further cut is likely, inflation will be watched closely. It currently stands at 2.1% but rising energy costs and food prices are expected to push the inflation up further past the 2% target.

Almost half a million UK homeowners have failed to meet a monthly mortgage repayment in the last six months. This is going to be a huge problem for the next couple of years for anyone who has a poor credit mortgage deal, or has risked taking on a low rate mortgage and will now be facing a mortgage rate hike. 

Anyone who found themselves unable to pay their mortgage to should take action immediately and discuss their options with the lender as soon as possible.

According to recent research by MoneyExpert, this found that since July last year around 463,000 people have missed mortgage payments. The personal finance website said that those aged between 25 and 34 were the most likely to have missed payments.

Sean Gardner, chief executive of MoneyExpert, commented: “Missing a mortgage payment doesn’t incur an automatic charge like failing to pay your credit card bill. But it is a sign of real distress as keeping a roof over your head should be the priority for most of us.”

The website cited the “difficult festive period” as a possible cause of many missed mortgage payments. Lenders have a duty to help people with missed mortgage payments and will usually only take serious action after 3 missed mortgage payments.