Having less than ideal credit does not imply your dream of homeownership is unattainable. Often called subprime mortgages or bad credit mortgages, adverse credit mortgages are meant to assist people with past financial difficulties get a house loan. Customised guidance and access to a large spectrum of lenders can help you to overcome past credit problems and move towards a better financial future.
Adverse credit mortgages are regular mortgages modified to fit applicants with restricted or poor credit histories, not a different kind of loan. Often misinterpreted as “bad credit mortgages,” these products are offered even if you have gone through insolvency, missed payments, CCJs (County Court Judgements), or default. While you might pay a bit extra initially, conscientious repayments can progressively raise your credit score since lenders change the interest rates and fees to reflect the increased risk.
Key Points:
Lenders closely examine your financial circumstances to decide your eligibility when you apply for an adverse credit mortgage. This examination considers elements including current income, job history, and general financial health beyond your credit score. Many borrowers discover that the chance to climb the property ladder exceeds the temporary expenses, even if you might have to pay more fees or higher interest rates.
The Mortgage Application Process:
Even with past credit difficulties, you still have options. Here’s why an adverse credit mortgage might be right for you:
Can I Really Get a Mortgage with Bad Credit?
Yes. While traditional lenders might hesitate, many specialist lenders are prepared to work with you—even if you have a poor credit history.
What’s the Difference Between Adverse Credit and Conventional Mortgages?
The key difference is in the eligibility criteria and risk assessment. Adverse credit mortgages are tailored to individuals with credit challenges, often resulting in higher interest rates or additional fees. However, these loans still provide a route to homeownership and credit recovery.
How Can I Improve My Credit While on an Adverse Credit Mortgage?
Making your payments on time is critical. Over time, as you demonstrate financial responsibility, your credit score can improve, allowing you to remortgage later on more favourable terms.
Is It Better to Remortgage After Credit Recovery?
Absolutely. Once your credit score improves, remortgaging can help you access lower interest rates and reduce your overall mortgage costs.
Take the Next Step Toward Your Homeownership Journey
Don’t let past credit issues hold you back. With specialised support and a range of adverse credit mortgage options, you can move closer to owning your home. Start your journey today by completing our simple pre-qualification form or arranging a callback with one of our experienced mortgage specialists.
Put your credit problems in the past. Teesside Money offers a variety of adverse credit mortgage choices and specialised support to help you acquire a home. Get a head start by contacting one of our knowledgeable mortgage experts or filling out our short pre-qualification form.
The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK
Think carefully before securing debt against your home. Your home may be repossessed if you do not keep up payments on your mortgage or any other loans secured on it.
Teesside Money Limited Company Registration number 10991314. Registered Address at 80 Coleman Street, London, England, EC2R 5BJ, with a Trading Address at Fast Track House, Thornaby, Stockton on Tees, TS17 6PT. Teesside Money Limited is registered with the Data Protection Act 1998 registration No. ZA287646 and is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 799826.