An adverse credit history mortgage is not only for people with bad debts, though this is a major use for the product. It is also useful for people with little credit history, which may also prevent them from having access to prime or mainstream mortgage products. There are many reasons why an adverse credit history mortgage might be required for such people.
One of the checks that is applied by lenders for an adverse credit history mortgage is the presence or absence of the applicant on the electoral roll. When people are not on the electoral roll, there may be good reasons for this. For example, they may have lived abroad which means they would not be listed anywhere. This may have a negative effect on their credit score and might increase the need for an adverse credit history mortgage.
Another reason for being missing from the electoral roll is frequent address changes. There may be good reason for this, though it might increase the need for an adverse credit history mortgage. For example, if someone is working on short term contracts in different parts of the country, it may be difficult to build up an address history for this applicant. Changing work patterns mean that an increasing number of people are working in this way, increasing the need for adverse credit history mortgage deals.
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If you are working for yourself, that’s another reason to consider an adverse credit history mortgage. self employed people who are unable to prove their income may have to take an adverse credit history mortgage, however no lender will make an offer with a loan to value of above 95 per cent. If you have loan to value of 75 per cent or lower it may be more appropriate to apply for a self certification home loan instead.
Other people who might need an adverse credit history mortgage may have fluctuating income. These could include salespeople who earn mostly on a commission basis. There are self certification mortgages available and many of these include adverse credit history mortgage deals as well. All of these circumstances mean that the adverse credit history mortgage is not just about dealing with debt, though it is a major aspect for many people.
Apart from the people with little credit history and fluctuating income, the adverse credit history mortgage can also be used to help people in financial difficulty get back on an even financial keel. Many lenders provide an adverse credit history mortgage with credit repair features, which means that people who repay these mortgages properly for a couple of years will be able to switch to a mainstream product with better interest rates.
Many people also use the adverse credit mortgage as a debt consolidation product to help them manage the finances that are causing them a problem. This can be a way to have one manageable debt and to get out of financial difficulties, as the marketing for some of these products suggests.
Whether you are looking for a credit repair product, a debt consolidation product or simply looking to make sure that your credit history has some positive entries in it, an adverse credit history mortgage can help.