Bad credit loans are available but you have to know where to look and who to speak to. Bad credit loans are designed specifically for the people who are suffering with bad credit or credit scores that are low.
Bad credit mortgages or sub-prime mortgages are becoming more common in today’s challenging credit environment and many of the mortgage lenders and building societies are now offering very competitive mortgage products to cater for this growing market.
If you need a bad credit mortgage, then you should always find out all the facts before you commit to anything.
So what is the difference between a bad credit loan or mortgage and a standard one. In essence, a bad credit mortgage is very similar to a standard mortgage. When you choose a bad credit loan, you need to be sure that you can meet the required terms; if you can show that you are capable of making regular payments, it could also help your credit score.
Although the bad credit loan mortgage market is much smaller than the main mortgage market, it can still seem complicated if you do not understand it. A bad credit mortgage broker will have a comprehensive knowledge of all the products on the market and is probably a good place to make a start. If you have large credit card debts, have been declared bankrupt, had a County Court Judgement (CCJ) against you or have had a mortgage application declined in the past, you should ask about a bad credit loan mortgage from a mortgage broker.
The mortgage industry is experiencing a countrywide squeeze that has tightened the guidelines for most mortgage lenders, but some are always working at ways to make things more flexible. That is why you need to ask your mortgage broker exactly what kind of schemes and rates are available for you if your credit score has been hit. If they cannot help you then there are plenty of others out there who will happily look for a deal on your behalf.
Many remortgage to pay off their bills and credit card debt, Bad credit loans can be used for purchasing, or remortgaging the equity on your home. This is a very popular option and is also a good way for homeowners to take equity out of their home and get some cash back for spending on other projects or just to clear bad debt.
Bad Credit Mortgage rates
The bad credit loan you get may carry a higher rate of interest and may have higher redemption penalties. At present interest rates are perceived to be low so try and get the best deal. You can always wait a while, improve your credit score and then maybe get a loan at a later date. The actual rate available will depend upon your circumstances.