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Get a mortgage with defaults & Poor Credit
Mortgages for people with poor credit have been around for a while so its no surprise that there are mortgages available for people with defaults.
We thought we would put together a shortlist of what you can expect from a mortgage when you have defaults registered on your credit file - mortgages that allow defaults and poor credit are referred to as poor credit mortgages.
Do you need a poor credit mortgage?
You may need a poor credit mortgage if you have been refused a mortgage from a high street bank or building society or have a low credit score, you will more than likely need a mortgage product that allows poor credit if you have defaults registered on your credit file.
If you do not know if you have any defaults registered against you, simply get your credit report and have a look - if you see defaults or other poor credit items listed on your credit file its very likely wont fit a high street lenders mortgage criteria.
What will a mortgage that allows defaults let me to borrow
Its hard to say what a mortgage that will allow defaults will allow without looking at your personal details in more details but we have done a little research and in general terms a poor credit mortgage will allow you to borrow up to 90% loan to value (LTV) of the purchase price with defaults registered against you.
Although if you have a lot of defaults or your defaults are very large then you may be restricted to 85% LTV but after that (85% LTV and below) the majority of mortgages for people with poor credit allow unlimited defaults.
The actual monetary amounts are not that different from high street banks and building societies in that you can usually borrow up to £500,000 and in some cases up to £1,000,000 depending on the mortgage product.
The types of interest rate will again depend on your individual circumstances but, generally speaking, you can expect the interest rate to site somewhere between 7%, 8% and 9% if you have defaults registered.
we have a couple of pages with detailed mortgage payment matrix for mortgages between £160,000 and £200,000 and for mortgage between £210,000 and £250,000 showing the monthly payments for mortgage terms stretching from 10 to 25 years which you should find helpful as it shows the possible payments for a different variety of scenarios in one place.
