BAD CREDIT
Hearing the word no in any lending aspect is a disappointment, however don't let that deter you from getting a mortgage. 3D Mortgages can help turn NO into a YES. Here are some things to consider...
Why?
Often there are simple reasons for being turned down for a mortgage, you might not have credit for one or you may not be searching up on a voters roll which could lower your credit score. You could also already have past credit issues such as defaults, missed payments, CCJ's, bankruptcy or even be in what is called a debt management plan (DMP) or IVA. All the above could effect your status with some lenders but the good news is there are lenders who will still give you a mortgage subject to status. The first port of call is for you to get an up to date copy of your credit file, this can be done free of charge by visiting Noddle (click on free credit report to access your report). Once you have this most potential reasons "why" you have been turned down can be answered. At 3D Mortgages we will sit down with you and go through the report free of charge to help you understand your situation.
What!
Now you have your credit report and you have identified "what" is causing the issue you can start to approach the situation or problem at hand. Your adviser will talk to you about all the options you have and will be able to talk you through the next steps.
So what is an adverse or sub prime mortgage? in essence it is the same as any other standard mortgage, the only real differences are that interest rates can be higher than standard mortgage products and it is likely that you will have to put down a larger deposit than a standard mortgage to reduce the risk to a lender. Ultimately the new mortgage could cost more to setup and maintain on a monthly basis however once a mortgage has been maintained satisfactorily for a period of time, your credit worthiness could improve meaning you might be able to renew your mortgage with a standard lender at some point in the future.
How?
So you now understand why lenders can say no and how you can start addressing this by obtaining your credit report. You also know a bit more about what an adverse or sub prime mortgage is which is great but how do you now go about turning the no into the yes you require? Well the good news is there are a rising number of lenders who specialise in these types of scenarios but it is a specialist area so finding an adviser who has access to these lenders and also has experience in dealing with these transaction types is important. At 3D Mortgages we pride ourselves on never saying no until all avenues have been explored for our clients. As this is a sensitive area it is extremely important to give a full overview of any past issues in order for us to help fully. It is also good practice not to keep on applying for mortgages after being turned down as this could have a negative effect on future lending requests. Contact us today for a non obligatory chat.
Your home maybe repossessed if you do not keep up repayments on your mortgage.
Credit Reports - Q&A's