There was a time when, if you had a less then perfect credit rating, you’d struggle to get a mortgage. Financial institutions are realising that more and more of us have credit commitments, whether this be car loans, credit card debt, store cards or even CCJ’s and bankruptcy, and are adapting their lending criteria and products to suit.
Moneyfacts are reporting that the number of mortgages available to those with bad credit has risen by 118 in the last six months. But what does this mean to someone needing a “bad credit” mortgage? Well, it means there is more of a choice out there, so you would hope that the deals will be competitive.
Whilst there is competition within the bad credit mortgage sector, the rates are still a fair bit higher than those mainstream mortgages, but this gives consideration to the additional risk the lender is taking on. This is still good news for those credit-impaired borrowers who wish to take out a mortgage to incorporate their debts and repair their credit rating as in the past there were very few lenders offering products, meaning the choice was quite limited.
