Bad credit mortgages
What is a bad credit mortgage?
While the housing market was booming, lots of people with defaults, arrears and CCJs (County Court Judgments) were still buying houses. They may have had 'bad credit', but mortgage providers offered 'bad credit mortgages' to help them get their foot on the housing ladder.
Those bad credit mortgages provided a valuable opportunity to improve their credit rating, by keeping up with their mortgage payments and showing future lenders they could manage their finances.
These days, it's a different picture. In today's mortgage market, bad credit mortgages don't really exist anymore as most lenders are reluctant to offer this type of mortgage - but that might not be a problem for you.
Do you really need a bad credit mortgage?
You might not be happy about your credit rating - but that doesn't necessarily mean every lender will turn you down.
Different mortgage lenders look for different things when they're considering a mortgage application. Just bear in mind that multiple refusals in a short space of time can look bad on your credit file, making it even harder to find the mortgage you're looking for.
Could you improve your credit rating?
Paying off a mortgage isn't the only way to improve your credit rating. At Think Money, we have years of experience we can call on when we're helping someone tackle their financial problems.
We could help you improve your credit rating, increasing your chances of getting the credit you're looking for - not just mortgages, but credit cards, loans and so on.
Talk to one of our friendly advisers on freephone 0800 195 2913 or check out our handy guide on improving your credit rating.
The next time you're looking for a mortgage, the words 'bad credit mortgage' might not come up at all.