FAQ 1: What is bad credit mortgage?
Bad credit mortgage is a product intended to assist individuals with bad credit history and other credit problems pay off your debts, refinance or buy property. The market forbad credit mortgage has expanded over recent years, similar to the growing number of individuals with bad credit history.
Because many are now being refused a standard mortgage due to bad credit, the major mortgage lenders in cooperation with modern expert companies have conceived products that are aimed at this market. This means that individuals trying to find a mortgage of this type have a lot of choices.
FAQ 2: What is the difference between bad credit mortgage and standard mortgage?
These two are basically almost the same. A lender will lend you a settled amount of capital, which you have to pay back on the arranged date with the settled interest rate added. You can choose from products where the rate of interest is predetermined, or where it can fluctuate in proportion to inflation. The main difference of these two is on the rate on interest and certain constraints.
For bad credit mortgage, the interest rates are higher then the normal rates to some extent and there could be restrictions on the amount of money you have to pay back and how often you will pay. If you choose bad credit mortgage, you have to be certain that all required terms would be met because your credit rating would be improved if you are able to show that you can pay regularly as agreed wit the lender.
FAQ 3: How would I know if I need bad credit mortgage?
Check your credit history. If you have ever been declared bankrupt, had applied for a mortgage in the past but were declined, have massive credit card debts or had a Count Court Judgment (CCJ) against you, you should consider bad credit mortgage.
FAQ 4: How would I know which bad credit mortgage is right for me?
Seek professional advice. A bad credit mortgage agent will have thorough knowledge of all the products available on market and will be able to tell you which products are best for you depending on your circumstances. Not only do they have the proficiency to determine the right products, they can also help you with your application by completing certain forms and sort out any problems you may come across with.