With increasing UK debt, many people find themselves with financial worries. A bad debt re mortgage could be the answer, but what exactly is a bad debt re mortgage and how can someone find a bad debt re mortgage to suit them.
A bad debt re mortgage is a specialist mortgage product that is intended for people who have had problems with credit and debt – and these days, that’s a lot of us. With more than three quarters of a million people missing at least one mortgage or credit card payment a year*, it is evident that the UK has significant debt problems and there is likely to be even more demand for a bad debt re mortgage as UK consumer debt surpasses the £1 trillion mark**.
Once upon a time, the bad debt re mortgage was a product that only a few needed and there weren’t many providers. Now there is much more demand for help with debt and the bad debt re mortgage sector has expanded to meet it. There are thousands of different deals from dozens of lenders so there is plenty of choice for the UK consumer who is searching for a bad debt re mortgage.
You may also hear the bad debt re mortgage referred to as the adverse credit remortgage or the bad credit re mortgage or a subprime re mortgage. Whichever term is used, they all refer to mortgages for people with credit problems. This is in contrast to ‘prime’ mortgages which are for people with no credit problems.
Getting A Bad Debt Remortgage
The good news is that almost any level of bad credit is acceptable for a bad debt re mortgage. Some bad debt re mortgage products accept applicants whose individual voluntary arrangements or bankruptcy orders have been discharged for only one day. And even if you have more than £5,000 worth of County Court Judgements (CCJs) it is still possible to get a bad debt re mortgage.
So, how do you go about getting a bad debt re mortgage? Well, there are a couple of options. You can visit the high street lenders, some of whom lend to this sector. However, this will limit your choices and many high street lenders lend their bad debt re mortgage products through specialist subsidiaries for the adverse credit sector. You can also look online. Many of the lenders will have details of their deals available and this can be a help in getting to know what kind of deal you might get.
By far the best option for the specialist bad debt remortgage sector is to go to a broker who specialises in this area. The reason for this is that the broker will have access to a wider range of deals and will be able to match your circumstances with the deal that best fits them. In addition to this, some lenders only lend through intermediaries so taking a DIY approach might leave you out of the loop on an important bad debt re mortgage deal.