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Sub Prime Mortgage Options

Mortgages can be difficult to obtain when you are looking for something that fits into your lifestyle. Most often we have trouble with the interest rates or monthly payments we are asked to pay. There are also several things like CCJ’s that can affect the type of mortgages we are able to obtain. CCJ mortgages exist as just one of the sub prime mortgage options that you have. Other sub prime mortgage options include adverse mortgages, bad credit mortgages, and many others. You have to keep in mind that specialty mortgages are designed to help with your specific problem and target the areas you need particular attention to, as well as being the only mortgages you may be able to obtain.

Let’s look at CCJ mortgages in depth. CCJ mortgages are considered sub prime mortgages because of the high interest and therefore high monthly payment you will receive. Anyone with a CCJ on their record is considered a risk and that also denotes this type of mortgage. You are a risk if you have had a CCJ because you have failed to pay at least one bill in your prior credit history that was taken to a court. This doesn’t mean you are still in the same financial area, however if you did not take steps to remove the CCJ once it was settled it will still be on your credit history. To avoid CCJ mortgages you have to have the CCJ removed from the history. To seek proper information regarding the removal of these issues see a mortgage broker or lawyer.

If you do not have a CCJ or have had it removed you will have other options besides CCJ mortgages. In fact you may be able to get a different sub prime loan or maybe qualify for a prime loan. It will depend on the rest of your credit history and electoral roll. Lenders will look at you financially as well as personally to determine the risk. If you are still considered a risk they may offer a sub prime loan for bad credit or because you are self employed. These types of loans may offer you a different interest rate. Some times sub prime loans offer a fixed interest rate that is a little higher than the standard rate for that period. This means you will have a constant rate for the life of the loan rather than the adjustable rate of so many sub prime loans. Again it will depend on the lender as to what they will offer based on your credit history and the risk they see.

It is important to understand all of your options, even adverse mortgages before you sign with a lender. Sometimes there are more options out there when you understand the types of sub prime mortgage options available than just going with the first offer. Keep in mind that with any type of sub prime mortgage you are going to be seen as a risk. Waiting until a CCJ is removed or until you have increased your credit score a few more points may be another option you have.

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