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Adverse Credit Mortgages
Get a Mortgage with Adverse Credit
If you want a mortgage but have bad debts registered against you then its more than likely you will need to apply for what is termed as an adverse credit mortgage. Applying for a mortgage with adverse credit registered against you need not be as complicated as it may sound.
Adverse credit mortgages are known by many names, you may have heard them referred to as bad or poor credit mortgages, sub prime mortgage, none conforming or credit impaired mortgage. They all mean the same thing - that the mortgage product you require or are applying for allows bad debt to be registered against the potential borrower.
Most people who want a mortgage with bad debt registered against them 
will normally have to use a mortgage broker as sub prime lenders do not generally deal with the public directly, this helps the adverse lender keep costs down to the borrower and removes the duty of care in recommending the correct mortgage away from the lender and onto the mortgage broker which is why a number of brokers specialise in the adverse credit mortgage market. Specialist brokers will more than likely deal with adverse lenders on a regular basis and should be more aware of what products and special deals are available at the time of your application
How do I know if I need an adverse credit mortgage
If you are not aware of any bad credit being registered against you, you may have applied to a high street lender for a mortgage and been turned down - this is an indication that a none conforming mortgage may be required. You may be aware that you have missed payments, defaults or CCJ's (county court judgments) registered against you in which case it is very likely you will need to apply for an adverse mortgage.
If you do need to apply for a mortgage with bad debts registered against you, you will need to speak to a mortgage broker. A specialist broker will normally require some form of broker fee to be paid reflecting the additional work needed to get sub prime mortgages through to completion, this can normally be paid up front or on completion depending on the broker but in general terms a specialist broker will normally put in much more work and definitely earn any broker fee they may charge due to the additional work, care and attention needed to get an adverse mortgage application to completion.
How do I know if I can I afford a mortgage with adverse credit?
This is a good question to ask - a mortgage that will allow bad debts registered will more than likely carry a higher interest rate than a mortgage without which will in turn mean higher monthly mortgage payments. If your mortgage broker understand the adverse credit mortgage market then they should be able to work through your income and expenditure and take into account any bad debt when working out what's affordable to you - the main thing to bear in mind is that you will be paying the new mortgage and you must be certain any new payments are affordable. We have a page on income and affordability which you may find useful as it explains how lenders work out your affordability as well as a page explaining affording a bad credit mortgage in more detail.
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