Adverse Credit Remortgages
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Bad Credit? Been refused a mortgage? Got CCJs,
defaults, arrears, IVAs, bankruptcy or repossession worries?
At MORTGAGE ALTERNATIVES we understand that from time to time
people struggle to maintain or make mortgage payments and that
sometimes circumstances dictate what is and isn't possible to do
with your money.
A remortgage is a way of changing from your current lender to
another lender.
One of the main reasons to remortgage is simply to find a better
deal than your current mortgage. Remortgaging can also be
effective at releasing any equity you have in you property. By
doing this, the extra funds can be used for home improvements,
debt consolidation or even paying for a new car. During the
remortgage process, the existing mortgage lender will be paid
the outstanding mortgage balance which will then be followed by
you borrowing either the same amount or larger depending on
whether you will be releasing some equity in your property.
There are perfectly ordinary reasons that can make getting a
remortgage difficult - because of credit "hiccups" like CCJs,
arrears, moving frequently or simply being self employed. If
you're looking for an adverse credit remortgage, whatever your
circumstances, you will be surprised in how many ways a
qualified professional adviser can help, whether you're
remortgaging to consolidate existing debt, moving house or
simply want a better mortgage deal.
To obtain whole of market advice from a qualified adviser (who
will act for you and not the lender) simply complete the short
online enquiry form and press PROCEED.You will be assigned a
professional adviser who will contact you usually within minutes
of submitting this form. If you wish to speak to an adviser
immediately simply phone 0845 833 7500.
When you are looking to remortgage it could save you time and
money to use a remortgage broker. Remortgage brokers are
specialists in this area who are able to offer you advice and
assistance in order for you to find the best remortgage product
for you. If your current mortgage deal is going to expire
shortly, you can arrange to switch lenders through a remortgage
broker who will be able to find you a new mortgage deal that is
right for you. |
To obtain whole of market advice from a qualified adviser (who
will act for you and not the lender) simply complete the short
online enquiry form and press PROCEED.
To help the process please enter as much
information as possible.
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Remortgaging can be a very confusing and stressful time,
particularly if you are not confident when dealing with
financial matters. It can sometimes be beneficial to go through
an expert for advice. A remortgage broker will not only be able
to offer you independent mortgage advice, they will also be able
to arrange the remortgage for you. This will save you time as
you won’t have to do endless research looking for a re-mortgage
deal that you think is right for you only to discover in the
future that you have made the wrong choice.
When considering remortgaging, your next step should be to think
about whether you need to raise extra capital by releasing more
equity in your property. This can be done by remortgaging for a
larger amount than the existing balance of your mortgage. Your
existing property will need to be valued by your new lender to
assess its value. The lender will then be able to assess how
much they are willing to loan to you in comparison to how much
you are able to afford to repay on a monthly basis.
As an independent mortgage broker, all of our mortgage advisers
are fully qualified and have many years of experience. Let us
show you how easy arranging a mortgage can be !
Complete our enquiry form today or give us a call on
0845 833 7500 |
| What are adverse credit
mortgages? |
Adverse credit mortgages come in a number of guises.
Impaired, sub-prime, non-conforming, specialist and
adverse all mean the same thing, it's simply that
different lenders adopt different terms to represent
borrowers who have or have had credit problems in the
past. This might be county court judgements (CCJs),
previous mortgage or loan arrears, bankruptcy or
voluntary arrangements (IVA) with creditors.
Having an adverse credit product option means that
borrowers who are not able to get a mortgage from a
traditional high-street lender may still be able to get
the mortgage they need to buy their house.
Traditionally, adverse credit homeloans have higher
interest rates because of the increased risk to the
lender. However these products are now
well established they are not really all that different
to the mortgage products offered by high street lenders.
The terms light, medium and heavy in this instance
represent the level of poor credit a borrower may
have within each product range. This varies from lender
to lender. For example, a light or low product
may allow for one missed mortgage or rent payment in the
last 12 months and up to £2000 of CCJs. A heavy
product, however, may have no limits on payments missed
or CCJs - typically, the poorer the credit, the higher
the interest rate charged. They may also vary in
loan-to-value available. |
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Upon receiving notification of a County Court
Judgement, you have one month in which to pay the amount
in full BEFORE the CCJ becomes registered with the
Register of County Court Judgements. Once the CCJ has
been registered, even if you pay it in full at a later
date, it will remain on your credit record for six
years.
This will affect your credit history, but it is not the
end of the world as it will still be possible to get
finance from specialist lenders. |
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Individual Voluntary Arrangement (IVA) |
An Individual Voluntary Arrangement, or IVA, is an
alternative to bankruptcy in which the debtor arranges a
formal agreement with his creditors to pay off a
percentage of his debt over a set period of time,
usually around 5 years.
An IVA is often seen as advantageous to bankruptcy as it
has less of a negative effect on the person's credit
history and their home remains relatively untouched.
However if you have arranged an Individual Voluntary
Arrangement, you will probably be aware that although an
IVA makes it much easier for you to keep your home, it
is standard for many IVAs to include a clause that
stipulates that after a set number of years you will be
required to have your home valued and to give your
creditors a certain percentage of the equity that has
been built up as a final payment. |
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It is important to realize, however, that lending to discharged
bankrupts is higher risk and as a result the lenders have to
take measures to protect themselves. This generally results in
higher interest rates for the borrower or a decreased
Loan-to-Value (the percentage of the property value the lender
is willing to loan), or possibly both. |
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