Adverse Credit Mortgages

Credit impaired homebuyers likely to need more help

Friday, November 22nd, 2019

According to research carried out recently by YouGov (the British international internet-based market research and data analytics firm, headquartered in the UK), approximately 1.25m people who were categorised as ‘credit impaired’ or having ‘adverse credit’ are considering purchasing a property during the next 12 months. 

The terms ‘credit impaired mortgage’ and ‘adverse credit mortgage’ are used to refer to people who have had issues such as missed loan or mortgage payments, county court judgements (CCJs) or accumulated defaults.

Given the additional challenges that these two categories present for applicants, using a specialist mortgage broker may improve the chance of gaining access to the best and most suitable mortgage in all the circumstances.

The YouGov research also suggests that, as a consequence of many now finding that they have a low credit score or adverse credit record due to increased unsecured debt levels, missed payments, CCJs, and defaults, the adverse credit mortgage market may be larger than many industry analysts had assumed.

It is not all bad news though as there are competitive options available. A specialist mortgage broker who has experience of using lenders in the adverse credit market may be able to help applicants secure a mortgage whether it be for a first purchase or to take the next steps on the property ladder.

Many of the lenders who provide mortgages to customers with impaired credit have processes in place where lending decisions are by real underwriters and not just computerised criteria. These underwriters can often take a more pragmatic view of the customer’s previous circumstances and their ability to maintain payments on a mortgage in the future.  

A mortgage broker with extensive experience of using lenders in this sector of the market could literally hold your “keys to the door”! That said, the research by YouGov concluded that many potential borrowers give up on the chance of ever getting a mortgage without even having spoken to a specialist mortgage broker like Caboodle Finance of Sutton Coldfield, Birmingham. 

Our team always does its utmost to ensure that our clients always receive the very best mortgage advice. If you want to see what some of our many clients think of us and the first-class service, they say we provide, just check out our many testimonials HERE.

So, if you would like some more help, please call us in complete confidence here at Caboodle Finance of Sutton Coldfield, Birmingham today on 0121 308 9114 or alternatively click HERE to contact us via our website and one of our expert team will be in touch.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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