Adverse Credit Mortgages Service

Most high street banks use a credit scoring system to work out if they will give you a mortgage. If you don’t get a high enough score you won’t get a mortgage and in many cases you won’t be told why.

As a mortgage broker firm, we work with lenders who base their decisions on your personal circumstances and credit history which we believe is much fairer and more transparent. If you have/had previous adverse credit issues, this may affect your ability to get a mortgage. Many high street lenders will not offer a mortgage if you have an adverse credit history. The good news is that there are solutions depending on your circumstances. We’re on your side and will find the right mortgage for you.

Special features of what we offer include:

• Specialist Lender Service – we can compare most UK lenders who will deal with adverse credit including County Court Judgments (CCJ), missed mortgage payments, previous defaults and Individual Voluntary Arrangements (IVA).
• Access to leading market mortgage rates – not just one or two lenders.
• Access to adverse credit repair mortgage deals – generally not available on the high street.
• Fast turnaround – speak to us today if you need to move quickly.
• Looking to raise additional finance on top of your existing mortgage or buy to let mortgage – we have access to a range of finance solutions.

There are many reasons why you might not be able to get a mortgage – Even if you have a substantial deposit and a means of repayment in place, your application may well still be refused if you have a poor credit score.

Adverse credit mortgage deals can mean that borrowers who are not able to get a mortgage from a traditional high-street lender may still be able to get the mortgage they need to buy their house.

Adverse credit mortgages – also known as sub-prime or bad credit mortgages – were more widespread before the economic downturn of 2008. However, in recent years mortgage lenders have become rather more cautious about lending to people with less than perfect credit history.

Banks and building societies are cautious about who they lend to, so they always check individual credit carefully to see if potential mortgage customers have any financial history that might make them likely to default on repayments.

Reasons for a poor credit score

A poor credit score is one of the most common reasons why you might be turned down for a mortgage and might lead you to consider adverse credit mortgages as an alternative. Some of the most common reasons for a poor credit rating include:

• Missed or late bill payments;
• Missed or late rent or mortgage payments;
• An outstanding County Court Judgment (CCJ) against you;
• Having no credit history – if you have no borrowing history. Lenders may be more cautious about offering you a mortgage as they have no record of how well you’ve previously kept up with repayments. Do you know your credit history and how lenders see you?

How to improve your credit rating

Our mortgage broker service provides specialist advice on mortgages where you have a poor credit rating. However, the cost of these mortgages is often higher than average. An alternative is to work on improving your credit rating before taking out a mortgage. There are several ways in which you can do this:

• Check your credit rating before you apply for a mortgage if you are in any doubt about your score. Repeated failed mortgage applications can further damage your credit score.
• Make sure you are on the electoral register.
• Having too many credit cards – particularly with large balances outstanding can leave a mark on your credit record. Do your best to pay off some of your credit card balance before applying for a mortgage and close any unused credit cards that have credit on them.
• Get a credit card aimed at people with poor credit scores. If you make full repayments each month, this should gradually improve your credit score.

Points to consider with adverse credit mortgages

• Adverse credit mortgages can provide a home purchase option for people who might otherwise not be able to obtain a mortgage at all.
• If you have stayed with your lender for a period of time (usually around three years), successfully made your repayments over that time and have no outstanding defaults or CCJs you should have ‘repaired’ your credit rating. At this point you may be able to remortgage to a standard mortgage deal through your existing lender or a high-street provider.
• Interest rates for adverse credit mortgages tend to be higher than those offered by standard mortgage lenders. These higher interest rates reflect the increased risk perceived by the provider in lending money to someone who has had previous financial problems.
• Early repayment charges may apply for a set period after you take out the mortgage, which could prevent you from switching to a more favourable rate once your credit score improves.

Challenges in the mortgage market

Recent changes to mortgage regulations have had a significant impact on how people can find and apply for the right mortgage.

The one change that has had the greatest impact is the need to ensure that when selecting your mortgage lender, your circumstances meet their criteria and that you provide all of the necessary information about your circumstances right at the start; otherwise, your application might be delayed, or even rejected out of hand. This means that getting good advice from the outset is more important than ever before, not just to make sure that you make it through the first stage, but every stage thereafter to ensure you have a smooth path to completion.

5 reasons to use Street Mortgage Solutions Ltd

• • Specialist mortgage advice – We provide a personal and professional mortgage advice service which does not stop simply because your mortgage application has been completed. Understanding everything that you should consider in the advice process is critical and our mortgage and protection specialists bring years of knowledge and experience to help. Our advisers are fully qualified.

• • Access to a wide range of mortgage products from a wide range of lenders – As a mortgage adviser centre, we have access to a wide range of mortgage deals from UK lenders. Our systems utilise the latest research software to help you get the best deal for your circumstances.

• • Access to additional services, carefully selected to suit your needs – Including valuations, conveyancing, general insurance and more, we can take the hassle out of making sure you get access to quality and affordable products and services. This means getting things done in a timely and efficient manner. This inevitably means higher service standards.

• • Contacting you at a time that suits you via your requested method – We all lead busy lives, so making sure you are contacted quickly and in a way that is easiest for you plays an important role. We offer a combination of telephone, email, post and texts, delivered according to your needs so that your mortgage is always the top priority, aiming to bring a smooth and successful outcome in all aspects of our mortgage service.

• In safe hands, each step of the way – At Street Mortgage Solutions Ltd we know how important each step of the mortgage process is. Knowing who to contact and what to ask can make all the difference in making sure we deliver a smooth and successful mortgage service. One you will want to come back to again and again. This is why you will not only speak to the same adviser throughout the mortgage process, but you will also have a dedicated administrator.

What is the Loan-To-Value ratio (LTV)?

The loan to value ratio of a mortgage indicates how much of your property you own outright (covered by your deposit, commonly known as equity) and the amount you are borrowing (covered by your mortgage).

Generally speaking, the higher the deposit you are able to put down (and thus the greater the proportion of the property you can purchase outright at the outset), the better the mortgage deal you are likely to get, and the greater your choice of deals is likely to be.

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