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Remortgage advice for people with bad credit

If you've failed to comply with the terms of any of your credit agreements during the last 6 years, this will have been reported to credit reference agencies. Each time you apply for a mortgage, the lender performs a credit search and this will reveal any issues that you've had managing your credit obligations. In other words, it makes it more difficult to refinance a loan or borrow any additional money.

Bad Credit Lenders

If you have an adverse credit history, this isn't necessarily a bar to getting approval. If you seek remortgage advice from an expert, they'll tell you that you have to find a way to make up for your past credit indiscretions. This could include having more equity in your home or a well-paid job. You can still get a remortgage deal, but you may have to turn to a specialist lender, such as Pink, Kensington Mortgages or Platform Home Loans.

Cost of Borrowing

Lenders use a method known as personal pricing to determine the cost of borrowing for each homeowner. It follows that a bad credit mortgage will be more expensive because the customer is statistically more likely to default on the agreement. Of course, not all forms of poor credit are the same. You'll pay a higher rate of interest if you've been declared bankrupt than if you were a few weeks late paying your credit card bill.

Mortgage Brokers

If you don't have much experience with respect to bad credit mortgage refinancing, it's worth seeking remortgage advice from a broker. He's not only able to trawl the market for the best deal, he has access to useful industry contacts. This can be the difference between a yes and no to your loan application. Advice from a mortgage broker will add 0.5% to 1% to the amount you're planning to borrow.

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