Having less than squeaky clean credit history can seriously hamper you in your hunt for a home loan. Up until fairly recently, people with a poor credit rating (also known as adverse or credit impaired) would often suffer the ignominy of being turned for a mortgage by most lenders. 

Fortunately a growing number of specialist sub prime lenders have realised there is an untapped market of thousands of people who are perfectly able to service a mortgage, but are blocked from the traditional routes due to bad credit history. Furthermore, some high street lenders have shown greater willingness by relaxing their lending policies and launching specialist subsidiaries to offer mortgages for people with a bad credit rating.

Whatever your circumstances, simply complete our quick no obligation enquiry form and let a specialist broker locate the best deals for you.

The interest rates for sub prime mortgages are higher than mainstream products, just how much higher depends on your individual financial situation. Those with just one CCJ would be viewed as ‘light adverse’ and will be able to get a lower rate than somebody who has been made bankrupt, for example. 

Although bad credit mortgage rates will never be the cheapest, the market has become more competitive as it has grown. Increased competition combined with a low base rate has seen a significant drop in adverse rates, so that the gap between prime and sub-prime has narrowed. You might find there is a deal that requires just a 5% down payment, which is on a par with the conventional market.

If you have a decent amount of deposit available, deals can be found and you can start to put your past behind you.

If you take out a sub-prime mortgage, your aim should be to return to mainstream rates as soon as possible. If you maintain your monthly payments with an adverse lender for, say, three years, you could be in a position where you can remortgage to a high street lender because you have repaired your credit rating.