Know the score…Bad Credit Mortgages

Specialist lenders offering bad credit mortgages to applicants with poor credit have enjoyed picking up the business that the high street lenders have turned away for some time. It is often unclear to buyers why they have been turned down for a mortgage from a high street lender, and with data protection laws it is likely that the lender will not disclose the reason either.

Bad credit mortgages come in many forms; you may simply have had a few late payments on your credit card. This is know as a poor payment profile and may lower your credit score, but may not necessarily nudge a lender into a “decline” decision, unless of course the late payments are the norm rather than happening “now and again”.

Too many late payments can result in the lender placing a default on your credit file. The default acts as a warning to other lenders that you did not keep to the agreed payment date on several occasions.

If you continue to ignore the default, and the reminders from your lender, you could be actioned with a Count Court Judgement or CCJ.

From the default stage you are running a huge risk of being turned down by the high street and being forced to approach a specialist lender, or Bad Credit Mortgage Lender, paying higher rates of interest and lender fees.