Adverse credit mortgage customers rarely turned away

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Individuals are rarely turned down when seeking adverse credit mortgages, according to a financial adviser.

Mike Pendergast, spokesperson for independent financial adviser Zen Financial Services, observes that most lenders will offer funding at a higher interest rate.

"With adverse credit, most lenders will have a range of products depending on the severity of the adverse credit," he explains.

"So a heavy adverse will be a higher interest rate than say a light, which could just be a couple of missed payments on a credit card," he adds.

In light of the US sub-prime lending crisis, Mr Pendergast recognises that some lenders are likely to tighten their application criteria.

But he asserts that there will always be somebody prepared to lend an individual money, albeit at a higher repayment rate.

The Council of Mortgage Lenders notes a "substantial expansion" of near-prime and sub-prime mortgage availability as lenders look to service "the full spectrum" of client needs.

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