How A Bad Credit Mortgage Repair Product Works For You
A bad credit mortgage repair loan could be the answer to your problems, especially if you have had bad credit and need to find a mortgage lender. These days, finding someone who offers a bad credit mortgage repair product is not difficult. If you keep up with the news, you will see lenders complaining about the level of bad debt. That’s because people are finding it difficult to repay their debts, with home fuel costs and interest rates on the rise. Some people may also end up needing a bad credit mortgage repair lender because illness or job loss has hampered their ability to meet repayments on their mortgage, credit card, store card or loan.
The fact is that there’s a lot of consumer credit available in the UK and increasingly there’s a lot of help for those who find it difficult to meet their repayments. And there are a lot of us about. The Citizens Advice Bureau dealt with 1.4 million new debt problems, which equates to 5300 every working day. The number of debt help enquiries is expected to rise through 2007 and 2008 (Dec 2006). Debt charities are recording similar figures and pointing to a debt crisis.
The trouble with bad debt – and the reason that people are interested in bad credit mortgage repair – is that it takes a toll on your credit report. And that has a direct effect on your ability to obtain credit and the interest rates that credit is offered at. Before looking at bad credit mortgage repair in more detail, let’s dispel one myth – there is no credit blacklist. However, what does exist is credit scoring. It’s important to know this when discussing bad credit mortgage repair because credit scoring is how lenders assess applications for credit, including mortgages.
Bad Credit Welcome
That means that for most standard mortgage lenders, applicants with bad debts, bankruptcies and other adverse circumstances would be beyond the pale. But the lenders who offer bad credit mortgage repair are another matter. They positively welcome applicants with adverse credit circumstances and they have a range of products available for them to choose from. With a bad credit mortgage repair product, you can expect to choose fixed, tracker or discount rates, different repayment options and different mortgage types, such as flexible or offset mortgages.
The idea of a bad credit mortgage repair is that you can repair your credit profile by repaying the mortgage properly. So although you may have to pay up to five per cent more when you get a bad credit mortgage repair loan, the lenders who provide this product expect that within three years you will move from the bad credit mortgage repair to one of their other products. This is because a good payment record on the bad credit mortgage repair loan will also go on your credit record and lenders will look at your recent history as well as your past history. If your recent history is good, then the bad credit mortgage repair has worked and you will be on your way out of financial difficulty.