Just because you have suffered credit problems in the past it does not mean you will be refused or penalised now. You will be delighted to know that there is a new breed of lenders with schemes to help people who would normally fail with High Street lenders.
Our lenders will judge each case on its merits and they are looking with a positive view to lend. We can arrange mortgage for clients who have had mortgage arrears, CCJ's, credit defaults, past bankruptcy/IVA or who have had a previous repossession.
Historical bad credit can be rectified over a period of time by good financial management and making your payments on time. Although any credit arrangement will show on your credit file for a period of 6 years, it is possible to raise your credit score by being sensible with your borrowing and making your payments on time. See our article on raising your credit score in 5 easy steps which may be of help to you.
Some of the most common blemishes on a credit report are
Missed or late payments on a loan, credit card or store card
Mortgage arrears
Defaults or CCJs
Bad conduct of bank account
Repossessions
Bankruptcy/IVA
The blemishes above are just some of the things that will leave a mark on your credit report. But don't fret we can still help you apply for mortgages, loans aswell as offer debt consolidation services, remortgaging and equity release. Bad credit loans are useful to consolidate all your outstanding debts into one easy monthly repayment, not only is the payment more manageable but a good record of repayment will help repair your credit score.
We have specialist lenders who will either look at your credit history if it is historical sympathetically or who may still lend with a slightly increased interest rate. Lenders are becoming more flexible as interest rates remain at an all time low and the housing market still performs well with prices across the UK still increasing annually. Historically property prices have doubled every 20 years and in more recent times within the last 10 years. Current demand would suggest that this will continue particularly in the light of the huge migration of people into the UK from the EU. A bad credit history no longer means that you will be refused a mortgage but that the terms and conditions will reflect your credit history.
Had Bad Credit - Bad Credit Glossary
Here are some common terms that you may have encountered if in bad credit.
Arbitration
This is a small claims procedure for debts below a certain amount, usually £5000. Arbitration generally occurs where a summons has been issued and the defendant denies that any debt is outstanding/owed. In this situation, the Court would set a hearing date, where both parties are to attend the Court and the matter is heard in a District Judge's Chambers (Office).
Bankruptcy is a serious situation and should never be considered lightly. There are generally two forms of Bankruptcy, Voluntary where you petition the Court for your own Bankruptcy or Compulsory, where a Creditor applies to the Court to make you Bankrupt. In order to be adjudged Bankrupt you must be deemed insolvent (unable to pay your bills, as and when they fall due). If you have been made bankrupt or are a discharged bankrupt you may be eligible for a mortgage.
Bailiffs
A Bailiff is an authoritative officer of the County Court and is instructed to carry out the orders of the Court, following a County Court Judgement (ccj). The Bailiff has the power to seize goods and possessions in satisfaction of a County Court Judgement and is instructed under a Warrant of Execution.
A county court judgement is processed in court, and will register on a persons credit file and remain there for 6 years.
Debt
An obligation to pay a sum of money which is due in consideration of the provision of items, services, and or goods.
Default
The failure to pay or lateness of payment of a sum due by a specific date or time. Defaults are not recorded on the public register but are registered with credit reference agencies.
High Court Judgement (HCJ)
Similar to a County Court Judgement, but usually involves debts owed in excess of £14,000-£15,000 +. Unlike CCJs where interest stops at the date of Judgement, High court judgements continue to gain interest until the debt is satisfied. Also the costs awarded in High Court are substantially higher than County Court.
Injunction
An order of the Court which bans, prevents restricts or prohibits certain actions. For example, you may obtain an injunction to prevent someone having access to a family member.
Lien
If you have in your possession, goods or assets belonging to a debtor you may have a right to 'exercise a Lien' and you may retain those goods or assets until such time as the debt is repaid to you.
Moratorium
A proposal to creditors to place legal action on hold. Usually suggested Prior to a voluntary arrangement.
Statutory Demand
In the event of a staturoy demand the debtor can have up to 21 days to satisfy the debt or come to a repayment arrangement with the creditor.
Summons
A Court document which sets out the claim of a creditor and which gives a specific time in which a debtor must either pay, admit or deny that the debt is owed.
Voluntary Arrangements
These can be either Individual (IVA) or Corporate (CVA). A Voluntary Arrangement is a proposal to creditors to pay off a proportion of the debts that are owed to them and they usually last between 2 and 5 years. The concept of a Voluntary Arrangement is that creditors would receive a more beneficial payment, than would be likely in the event that the individual becomes Bankrupt or the company is Wound Up. In order for a Voluntary Arrangement to become binding, it must be accepted by 75% (in value) of the creditors.
Winding Up Order
An order of the Court for the seizure and realisation of a company's assets, for the benefit of its creditors. Usually conducted by either The Official Receiver, or an Insolvency Practitioner known as the Liquidator.
