Bad credit is not unusual for a mortgage
Whenever you apply for any type of financial product, your credit rating is scrutinised. Credit rating is a way for the lender to judge how consistent you have been in the of the repayments in the past with the loans that you have borrowed. They need to ensure themselves that it is worth lending you money.
Mortgage is secured against your property, in case if you default on payment lenders will repossess the property that has been mortgaged. That is the reason lenders have no qualms about offering mortgage on liberal terms. But, of course, if you have had a bad credit history lenders will charge a higher interest from you.They will keep a track of your income and outgoings. In addition to that a thorough credit check will be carried out by the lenders. The mortgage lender will generally take the help of two major credit reference agencies, Experian and Equifax. They can identify if you have had any past problems with a financial provider.
There are certain criteria which leave you as a bad creditor like County Court Judgements against you, defaults, arrears, missed payments, Bankruptcy etc. Although, these reasons are not very uncommon and can happen to any individual you need to have a clean record in order to get cheap rates on your mortgage.
It's very important not to apply repeatedly to the lenders who have already rejected you in the past. Every time you're turned down loan - regardless of the reason - this will hamper your credit rating and further injure your probability of getting a mortgage.
Reassure yourself that even if you have bad credit rating you can get a bad credit mortgage that is specifically designed to meet your requirements. There are lenders who are rubbing shoulders to provide a custom designed mortgage to borrowers.
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|THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. ALL LOANS ARE SUBJECT TO STATUS.|