Adverse Credit History - Does This Mean You Cannot Get A Mortgage?

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Every person who applies for a credit card or other credit agreement will have a credit history, in fact today it is virtually impossible not to have a credit history. On your credit history you will have things such as your payment history and any defaults recorded. Each time you miss a payment or are even late with a payment on any credit agreement the chances are that it will be put on your credit history.

This credit history is then used when you apply for any form of credit, the higher your credit rating the more creditworthy you are seen as being. If you have a low credit rating it is likely that you will be turned down for future credit, including mortgages. So having an adverse credit history can cause you problems when you are thinking about getting a mortgage.

It is always recommended that if you are unclear as to what your credit history will show you should check this with the two main credit agencies before you apply for a mortgage. The two main credit agencies are Experian and Equifax, with most of the mortgage lenders using Experian for their credit checks they are always a good starting point.

Problems with adverse credit history
Difficulty in getting credit including mortgages, credit cards and hire purchase agreements. Adverse credit history takes a long time to repair, in many cases it is around 6 years for a defaulted payment or payments to clear. Having an adverse credit history means that you are likely to be subject to higher interest if you get an adverse credit mortgage. This results in you having to pay more for a mortgage compared to someone with the same type of standard mortgage.

With the credit crunch we have seen many of the adverse credit mortgage lenders struggle to obtain funding and subsequently most of these lenders have stopped offering new mortgages to customers. There are still some mortgage lenders out there offering mortgages for people with a bad credit history.

Adverse credit mortgage advice
If you have an adverse credit history then you need to get advice on how best to deal with getting an adverse credit mortgage. To get more information on adverse credit history you can visit one of the many online mortgage comparison websites who have pages dedicated to this subject. Or if you prefer you can speak to a trained mortgage independent advisor who are used to helping people with an adverse credit history get mortgages, all ways check that the mortgage broker is free of charge and 100% impartial.


About the Author:
Jason Haines is a protection and mortgage advisor at godirect.co.uk, one of the UK's most trusted information site about personal finance. Here you can find details on the best bad credit mortgages available today and the cheap redundancy and income Protection illness quotes.



Article Originally Published On: http://www.articlesnatch.com


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