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Mortgage your Home with Bad Credit
People and borrowers with bad and adverse credit are finding it harder and harder to get their home mortgaged with bad credit, lenders are tightening their lending criteria and mortgage products are less available for people with bad credit than they have been in recent times. Its not all doom and gloom thought, the mortgage lenders that are still lending have products that are tailor made for bad credit clients with some attractive deals if you can fit their lending criteria.
If you want a home mortgage with bad credit, also known as a bad credit remortgage or mortgage refinance their are probably a few questions you will want answered before you go through the rigmarole of applying for a mortgage refinance with bad credit, we have some research and will hope to cover a few of the more common questions here.
Will I qualify for a home mortgage with bad credit?
Whilst most of the the sub prime mortgage lenders have withdrew a number of mortgage products from the adverse mortgage market its important to remember that there are a handful of lenders who have expanded their mortgage products, these lenders tend to be the ones with funds still available (unlike a number of lending institutions in the times of the credit crunch) who have targeted the remortgage and mortgage market for clients with equity or deposits available. For clients with poor debt their are specialist bad credit mortgage and bad credit remortgage deals that should allow people with deposits and/or equity in their property remortgage.
How much equity will I need for a mortgage with bad credit?
The amount of equity required for a home mortgage bad credit mortgage will vary depending on your circumstances but, for instance if you have defaults and a few CCJ's and a missed mortgage payment or two, its likely you will be best (if you are able) to go for a 70% loan to value (LTV) mortgage, because a mortgage for 70% of the purchase price will mean you require 30% deposit or equity the lender will be more will to accept CCJ's and the odd missed payment.
For anything more than a couple of missed mortgage payments you would probably need to apply for a 60% or 65% LTV mortgage, although this may seem like a ridiculous amount of deposit to have available, one would imagine that these products are aimed squarely at the remortgage market as its more likely that someone with bad credit will have equity rather than a large deposit available, although that being said we have some across a number of people of the years who have had credit problems in the past, have bad credit listed on their credit file but have since become very affluent, even though the bad credit will remain on their credit file for a number of years after clearing any bad debt.
If you truly want to find out if you can qualify for a home mortgage bad credit then speak t a specialise bad credit mortgage broker, this will be much better than speaking to the banks yourself as its unlikely the high street banks or building societies will be able to help, whereas a specialise mortgage broker should be able to ascertain if you qualify for a mortgage with bad credit fairly quickly.
