Bad Credit Mortgage Lenders
The question that most clients ask is what is a Bad Credit Mortgage Lender, and why are they so different from our high street lenders. The major difference between the lenders is that high street lenders base their decision to lend or not, on points scored following the submission of a Decision in Principal application. If you score enough points your application will be approved, if not it may go to refer if the case is borderline, if not it would be declined.
With the Specialist Lenders who will accept a Bad / Poor credit profile it is much more of an manual underwrite where we are able to access the criteria of the lenders and place any application based on our knowledge and being able to discuss with the underwriters how they would view an application with credit issues.
The Specialist lenders also have various levels of Bad Credit that they will accept which would depend on the size of the deposit that you are able to put down, as less risk to the lenders attracts better terms and more flexible underwriting.
This is a fast changing market place with new lenders coming to the market on a very regular basis, which means that there is real competition for business bringing the gap between the high street and the specialist lenders down to a much lower and attractive level.
The overall cost for comparison is 5% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.