What Options Do You Have When Considering Adverse Remortgages?
A few years ago if you were shopping for an adverse mortgage or adverse remortgages you were probably surprised at how easy, and how cheap it was to find a sub prime mortgage. There were many sub prime mortgage deals out there and a whole industry powering the sub prime sector. But the credit crunch stopped all that: most of the sub prime deals were funded by American institutions, which lost billions of dollars in the sub prime mortgage crash. So now you are coming to the end of the great deal and you need adverse remortgages – maybe you have debts, or maybe you have saved a bit of money and are looking to expand your finances. But who will refinance you now all the American lenders have returned home?
You have several options if you are coming to the end of a sub prime deal, but unfortunately none of them will be cheaper than the rate you are on now. Things have changed dramatically in a year and there is no adviser or lender in the UK who will find you cheap adverse remortgages. But they will be able to help you find something. It’s just a matter of making the most of your money and making sensible choices.
The first is to stay with your existing lender. Some may be able to offer you adverse remortgages, less competitive than your existing deal, but a deal nonetheless. It’s always good to try your existing lender first as retaining that relationship is reasonably hassle-free. But it might not be the best deal – shopping round has never been more crucial for adverse remortgages than now.
So your second option is to look around and see what adverse remortgages you can get elsewhere. This might be a hard task, but not an impossible one. Many people who have been sub prime borrowers for years may have a lot better credit score than they first imagined, so they may be able to swap adverse remortgages for near prime or even prime remortgages. This could mean a rate as good as your previous one and terms that are much more satisfying. So go online and talk to an adviser to see what situation you are in.
Whatever your financial situation, if you are coming to the end of your adverse deal and need adverse remortgages, don’t sit around and wait to end up on your lender’s standard variable rate. You might find a huge mortgage bill on your doorstep all of a sudden that you just cannot pay. An adviser and good research will help you find adverse remortgages during this difficult time.