Regular And Light Adverse Mortgages | Whats The Difference
Many borrowers are now considered risky enough to have to take out light adverse mortgages. Self cert borrowers for a start are much riskier than once before. Even if you run a thriving business or earn lots of money in extras and bonuses, you are still self cert and as a result may have to look for sub prime deals. You might have one or two misdemeanours on your record, and where once they could have been ignored, now they are relevant to cautious lenders. You may not have ever had debts before, you may be new to this country – there are many reasons that you would be a slightly riskier option and as a result would need light adverse mortgages.
There is no need to fear the label of light adverse mortgages. A year ago it certainly was a label of those who have a bad credit history, but now it is just the label of someone who is not prime. Prime means a wage can be proved, no debts can be found and the borrower has lots of equity. Not having one or any of these characteristics does not mean you are a bad borrower. Risk is just paramount to mortgage lenders, so they opt to offer light adverse mortgages.
And it isn’t a disability. There are still plenty of light adverse mortgages on the market in the form of self certified mortgages, high loan to value mortgages and flexible mortgages. There are even light adverse mortgages for those looking to enter into buy-to-let. Rates for these loans are also pretty decent, especially if you have a good credit record. Just because you are different doesn’t mean you won’t find finance.
The only difference between regular mortgages found on the high street and light adverse mortgages is that they cannot be found on the high street. To access the best and the most varied light adverse mortgages you need a mortgage broker. A broker can search specialised lenders for the exact mortgage for you. You may need to consolidate a little debt, or you may need to tie your light adverse mortgages into your business. Whatever you situation a broker will be able to find you a lender that will lend.
After the credit crunch mortgages in the UK changed forever. Risk became all the more important and more people are now finding it impossible to get a deal. But if you need light adverse mortgages, you have nothing to fear. It just means you do not fit into a preset status quo, which is never a bad thing. Light adverse mortgages work, are still available and could help your finances flourish during these tough times.
