If you want to get the best mortgage for people with bad credit rating, then you won’t have far to look. Choosing the best deal on a mortgage for people with bad credit rating depends on a number of complex factors, including the lending criteria, the borrowers’ circumstances, the interest rates available and the types of mortgage for people with bad credit rating that consumers are interested in. Luckily, you don’t have to do all the hard work. We’ve searched online to find some of the latest deals on a mortgage for people with bad credit rating.
Here’s what we found. These are just some examples of the deals you can get. Although they are not linked to specific mortgage lenders, you can use these to get a feel for the mortgage market and they will be a good starting point when you contact a broker or do your own search for a mortgage for people with bad credit rating.
Fixed rate deals are generally available as a mortgage for people with bad credit rating. These fixed rates will be fixed until specific dates in the future. They will be available with high joint income multiples (subject to market conditions), which means that if you are seeking a mortgage for people with bad credit rating with a partner, this type of deal could suit you. These mortgages usually have an arrangement fee and are available up to varying maximum loan to values. There are usually early repayment charges which are generally higher then the high street deals for this mortgage for people with bad credit rating.
Another mortgage for people with bad credit rating is a buy to let deal, with a fixed rate. This buy to let mortgage for people with bad credit rating has a low rental income requirement. Early repayment charges can be as high as six per cent and an arrangement fee is usually payable. The maximum loan to value for this mortgage for people with bad credit rating is approximately 65 per cent, but this can change depending on the state of the market.
Adverse Credit Mortgage Deals
There is also an adverse credit mortgage which would suit first time buyers as it is available with a maximum loan to value ratio of up to 95 per cent (depending on the severity of your bad credit). Again, fixed rates deals can be available for a mortgage for people with bad credit rating. Early repayment charges will generally apply during the fixed rate period and arrangement fees will be charged by the lenders.
Sometimes we have seen a bad credit mortgage with fixed rates, a high loan to value and as an added incentive we have seen lenders offering cash back, this cash back has been known to be as high as £500. Some deals may offer an overpayment facility for a mortgage for people with bad credit rating. Arrangement fees will generally apply as will early repayment charges.
100% mortgages used to be available as a mortgage for people with bad credit rating but in current market conditions we have seen lenders pull away from this segment of the market. Will they come back in? Who knows – only time will tell?
In general Buy to Let mortgages are not regulated by the Financial Services Authority.
