Sub Prime Lenders - Get A Mortgage With Bad Credit
Below is a MRR and PLR article in category Finance -> subcategory Mortgage.
Subprime Lenders: Securing a Mortgage with Bad Credit
Overview
Struggling with bad credit? You’re not alone, and there’s a dedicated sector ready to assist you. Specialized brokers exist to help those with adverse credit find suitable mortgage deals.
Understanding Subprime Mortgages
For individuals with poor credit histories, securing a mortgage often means facing higher interest rates. Lenders consider these borrowers riskier, which is why the subprime market thrives. Despite the challenges, many people do not meet the strict criteria of traditional mortgages, making this sector lucrative due to commissions and elevated interest rates.
Proceed with Caution
Unfortunately, some disreputable lenders prey on unsuspecting borrowers, charging fees for mortgage applications and providing less favorable deals. To find a trustworthy lender, consider recommendations from friends or explore resources like [www.mortgagesorter.co.uk](http://www.mortgagesorter.co.uk) and [www.yourmortgage.co.uk](http://www.yourmortgage.co.uk), which offer information on credit-impaired mortgages and potential lenders.
Shifting Trends
Recently, mainstream banks and building societies have begun to tap into the bad credit market, noticing missed opportunities. Around a dozen lenders now offer subprime, credit-impaired, or complex prime mortgages, sometimes referred to as non-conforming loans.
Complex prime deals cater to unique circumstances, such as businesspeople or pensioners with income from shares or pensions, who may not qualify for traditional mortgages. Options available include fixed rate, capped, and discounted deals.
Understanding Your Credit Rating
Credit ratings are categorized as light, medium, or heavily adverse, depending on the nature of your credit issues. Factors like loan defaults, mortgage arrears, bankruptcy, and County Court Judgments (CCJs) can impact your rating.
A Brighter Financial Future
The positive news is that after approximately three years of committing to a subprime mortgage, your credit rating is likely to improve. At that point, you might be eligible to remortgage within the mainstream market at a lower interest rate.
You can find the original non-AI version of this article here: Sub Prime Lenders - Get A Mortgage With Bad Credit.
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