Bad Credit Mortgages
you apply for a mortgage,
the provider generally undertakes a series of checks on your personal
data to ensure you are worthy of a mortgage. One of these checks
entails a credit check to identify your credit rating.
The purpose of checking your credit rating assists the mortgage
provider in tracking your management of financial products.
The provider will assess based on this information the ‘risk’ factor of lending the amount of money. Information such as your income and expenditure are used. Generally, mortgage loan providers use a credit reference agency such as Experian or Equifax who are the people who hold information about you and are responsible for giving you the so important credit rating. A credit reference agency will provide detailed information on your borrowing habbits, detail any credit agreement against you, payment records, for example credit cards and county court judgements.
If you have a bad credit rating due
to historic financial problems or difficulties borrowing could be
made surprisingly more difficult. Many people can find it hard to
obtain a mortgage
and providers may reject an application if you have a poor credit
The impact of being rejected also has a negative impact, as this sort of information will be recorded against your credit profile. Therefore, the knock on effect of this is that it could make it even more difficult to obtain a mortgage or even a loan of some sort. The question for most people is does that mean I will never get a mortgage? The simple answer is no.
The mortgage market has many providers who provide mortgage products for all types of people with differing financial situations including those with credit problems and damaged credit ratings.