Mortgages for those with financial difficulties
Debt in the United Kingdom is at an all time high and is often reported to be in excess of £1 trillion. It is a problem that is increasing and is resulting in many people finding it difficult to keep up with their repayments. As a result of this, it has become common to find people with poor credit histories who struggle to arrange a mortgage.
If you are worried about money problems or if you believe you are in severe financial difficulty, the first thing to do is to seek professional advice. The Consumer Credit Counselling Service (CCCS) is the UK 's recognised, leading debt advice charity offering free and confidential advice.
The real factsA poor credit history can come about by a number of factors, not just previous mortgage related problems. These can include such things as moving home a lot or the lack of a bank account.
It is worth keeping in mind that, to a lender, your circumstances may not seem as bad as you believe they are and you may have much more choice than you currently think. The UK mortgage market is arguably the most advanced in the world and there are many competitive mortgages for borrowers no matter what their circumstances. And, perhaps most importantly, there is no need to go to one of the many bad credit specialists and pay an interest rate which is sky-high.
It is important to realise that just because you have poor credit history currently, this will not be true forever. Initially, you may have to pay a higher rate for a mortgage, but once you have had it for three years and have managed to meet the repayments each month, you will have effectively written a new credit history - provided you have not accumulated additional debt problems. At this point it is likely you will be able to arrange a standard mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage
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Charcolonline is a trading name of @Charcol Limited. Registered office: Holbrook House, 10-12 Great Queen Street, London, WC2B 5DD. Registered in England No: 3795361.
@Charcol Limited is an appointed representative of Charcol Limited which is authorised and regulated by the Financial Services Authority (FSA reg. 427339). Registered Office: Holbrook House, 10-12 Great Queen Street, London, WC2B 5DD. Registered in England No: 3397767. The FSA does not regulate some investment mortgage contracts, these are regulated by the Consumer Credit Act (CCA).
*The term exclusive is defined as mortgages which are only available through Charcol Limited and @Charcol Limited and semi-exclusive mortgages are those which are available through Charcol Limited and @Charcol Limited and a limited number of other broker networks.
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