There are more and more people with a bad credit second mortgage, particularly with rising interest rates and rising debts. There are also many reasons why having a bad credit second mortgage may be a good idea. Here are four good reasons to have a bad credit second mortgage.
One of the best reasons to have a bad credit second mortgage is to improve on the mortgage deal you already have. If your adverse credit mortgage deal is a bit long in the tooth, it could be time to take advantage of the new bad credit second mortgage deals that are available. A competitive bad credit second mortgage deal could help you to save money on interest and capital repayments and leave more money free for other purposes. Saving on interest is an excellent reason to choose this type of mortgage.
Another good reason to get a bad credit second mortgage is to repay other debt. Some bad credit history mortgage deals are promoted as debt consolidation products. In other words, you get to wrap all your debts into a tidy package and make a single monthly payment. How this works is by releasing some of the equity in your existing home when you take out the bad credit second mortgage. Once the mortgage has been approved, that money can go straight into the hands of your creditors, leaving you relatively debt free.
Repairing Bad Credit Scores
If you have been out of the country for a while, a bad credit second mortgage may be the first step you take to rebuild your credit history. If you have been living abroad, the chances are that there will be little record of you on the electoral roll and your credit history will be thin or non-existent. This may make it difficult to get a mortgage with standard terms. A bad credit second mortgage may be a good move to restore your credit profile. After a few years you can move to new mortgage product as you will then have a history.
If you’re a self employed investor landlord, a bad credit second mortgage may be the best way to free up investment capital. Although you may not be in debt, your irregular financial situation may make this an option, particularly if you have had problems making payments in the past. A bad credit second mortgage on your buy to let property will allow you to release some of the equity in your investment and invest in a new buy to let property.
There are many mortgage lenders who offer bad credit second mortgage deals to cater for different circumstances. So whether you are interested in getting a better mortgage deal when you have bad credit, debt consolidation or debt repayment, credit repair or property investment when you are self employed there is sure to be a suitable mortgage deal for you. For the best deal on an adverse credit mortgage, consider asking a professional mortgage broker to sift through the deals that match your circumstances, then you will be sure to get the right bad credit second mortgage.