Bad Credit Mortgages FAQ
What is a bad credit mortgage?
Bad credit mortgages are mortgages which are aimed at people who have had money problems in the past which may affect their ability to obtain credit. They are also known as sub prime mortgages.
Why would I need a bad credit mortgage?
If you have a low credit score, have had County Court judgements in the past or have struggled with previous debt and as a result are unable to get a mortgage from a mainstream lender, you may need a bad credit mortgage instead.
How can a bad credit mortgage help me?
If your credit score or past problems mean you will fail lenders' standard credit checks a bad credit mortgage could help you to get onto the property ladder.
What are the downsides of bad credit mortgages?
Bad credit mortgages tend to have higher rates. Lenders price for risk and if you have experienced credit problems in the past you are deemed a higher risk. You may also have to pay a higher deposit for the same reason.
What fees will I pay on a bad credit mortgage?
Fees for bad credit mortgages are the same as for standard mortgages. You could face an arrangement fee, a booking fee, a valuation fee and legal fees although not all fees apply to all products.
How can I compare bad credit mortgages?
You can use Know Your Money's free and easy to use comparison tables to compare bad credit mortgages by rate, fees and overall cost.
