Are Mortgages Being Handed Out To Bad Credit Brits?
Do you know your credit score? If you know the number and it isn't that high, you may be asking yourself if you will still qualify for a mortgage. It won't be easy to get a mortgage with bad credit, but it still should be possible.
There are a lot of different things that a loan advisor will look at when deciding whether or not to accept or reject your loan and your credit score is one of those things. If you know that your credit score is going to be a problem, you should start taking steps to repair it right away. If you want to improve your credit, limit the number of credit cards that you have, the amount of debt that you carry, the number of credit checks that are done on you and the number of late payments that are made. A good credit score is going to get you a better interest rate, but just because your credit is bad, doesn't mean that you won't get a mortgage.
The downturn in economy has made it difficult for people to get a mortgage with bad credit. If there is no way of you improving your credit, you are most likely not to be considered for a mortgage. You could ask someone to cosign, however this is very risky for the cosigner, as their credit score is put on the line for you.
Maybe you have managed to improve your credit over the last six months, paying bills on time and clearing some off the debt. You could go to a number of banks to see who is offering the best rates and try and get the best deal available to you. You can always remortgage, should you continue to improve your credit score over the next few years.
You're probably going to be left with paying a higher interest if you have a poor credit rating. The mortgage company may well insist that you get insurance, if you don't have funds to cover the down payment. This could increase the cost considerably, so you need to ensure you budget for everything and know exactly how much you will be paying each month. If you default on a mortgage, it is very unlikely that you would ever get another mortgage in the future.
If you have actually had to file for bankruptcy or defaulted on a mortgage in past, right now it's very unlikely you will get a mortgage. The only thing you can do is shop around, you may have to pay high interest, so it may well be that it's not even worth pursuing.
Be smart, save to get the best deal and keep that credit score good!
There are a lot of different things that a loan advisor will look at when deciding whether or not to accept or reject your loan and your credit score is one of those things. If you know that your credit score is going to be a problem, you should start taking steps to repair it right away. If you want to improve your credit, limit the number of credit cards that you have, the amount of debt that you carry, the number of credit checks that are done on you and the number of late payments that are made. A good credit score is going to get you a better interest rate, but just because your credit is bad, doesn't mean that you won't get a mortgage.
The downturn in economy has made it difficult for people to get a mortgage with bad credit. If there is no way of you improving your credit, you are most likely not to be considered for a mortgage. You could ask someone to cosign, however this is very risky for the cosigner, as their credit score is put on the line for you.
Maybe you have managed to improve your credit over the last six months, paying bills on time and clearing some off the debt. You could go to a number of banks to see who is offering the best rates and try and get the best deal available to you. You can always remortgage, should you continue to improve your credit score over the next few years.
You're probably going to be left with paying a higher interest if you have a poor credit rating. The mortgage company may well insist that you get insurance, if you don't have funds to cover the down payment. This could increase the cost considerably, so you need to ensure you budget for everything and know exactly how much you will be paying each month. If you default on a mortgage, it is very unlikely that you would ever get another mortgage in the future.
If you have actually had to file for bankruptcy or defaulted on a mortgage in past, right now it's very unlikely you will get a mortgage. The only thing you can do is shop around, you may have to pay high interest, so it may well be that it's not even worth pursuing.
Be smart, save to get the best deal and keep that credit score good!
About the Author:
Mark Dawson writes for the the Loan Arrangers where you can compare loans and apply online for homeowner loans, and bad credit loans.
posted by Debt Consolidation Loan at
12:36 PM
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