Even if you’re in the grip of debt your bad credit mortgage company UK loan need not have you in a vice. Although bad credit will limit the loans you can get, with a bad credit mortgage company UK consumers can now benefit from the flexibility that exists in the rest of the mortgage market and get flexible with their bad credit mortgage company UK deal. So how exactly does this work and what are the benefits of flexibility for the bad credit mortgage company UK applicant?
Flexible loans have now been around for about a decade in the UK market, though they have existed for longer than that in Australia and elsewhere. They were introduced to the mainstream lending market by Virgin, with a current account mortgage and it wasn’t long before other lenders were offering mortgages of this type as well as another type of flexible mortgage, the offset mortgage. Offset mortgages now represent a significant and growing percentage of the UK mortgage market and now you can get this flexibility with a bad credit mortgage company UK loan.
Flexibility means different things to different lenders and the bad credit mortgage company UK deals are no exception. If you get a bad credit mortgage with flexible features then you can expect to be able to make overpayments of a certain percentage a year without incurring early repayment charges. This is usually between five and ten per cent. Making overpayments may seem a long way off when you first get a bad credit mortgage company UK deal, but as your finances get straighter you may be able to take advantage of this flexible feature. It is a popular one because it means that you can reduce the amount owed on your adverse credit mortgage loan each year and the interest owed will go down too.
Basic Flexibility With Bad Credit
That is the basic level of flexibility you can expect from a bad credit mortgage company UK lender, but there are other features to look out for as well. Fully flexible adverse credit mortgages – and there are some of those around – allow not only overpayments, but also underpayments and payment holidays. There may also be borrow back facilities with your bad credit mortgage company UK loan. Remember however underpayments and payment holidays could increase the mortgage term and/or the total amount payable.
Underpayments are useful if you are going through a rough patch and need to cut down on mortgage payments for a while. Usually you will have to agree this with your bad credit mortgage company UK provider, and there may be conditions about having previously made overpayments. There may also be conditions stating that you must have paid the mortgage properly for a period of six to 12 months. If you think you will have trouble meeting payments for an extended period, such as after the birth of a child, you may be able to take a payment holiday and stop paying altogether for a period agreed with the lender. And if you have previously overpaid but want a lump sum, you can reclaim previous overpayments through a borrow back facility. These flexible features mean that fluctuating finances need not be a problem and need not land you with further credit problems. All you have to do is keep communicating with your bad credit mortgage company UK lender.