Sub Prime or Adverse Mortgages

The more understandable definition of sub prime or adverse mortgages can be a mortgage for someone who has, or previously had, financial difficulties registered on their personal credit file. 

Typical examples of financial difficulties are:

 

1. County Court Judgement (CCJ's)

2. Defaults

3. Discharged bankrupts

4. Voluntary arrangements (IVA's)

5. Mortgage arrears / missed payments

6. Loan arrears / missed payments

7. Credit card arrears / missed payments

8. Hire purchase (HP) arrears / missed payments

9. Secured loan arrears / missed payments

Although all of the above problems can, and probably will, affect
arranging a mortgage, on the whole they possibly won’t stop you having one.

The worse your credit situation is and the more recent the problem would have effect on the type of mortgage you can have and its cost. The main problems would be the loan to value available as well as the additional up front costs and a higher interest rate would be payable.

Using the experience our individual advisers have built up over the last 20 years, we would never take the easy option and automatically put you on a sub-prime deal, in fact on many occasions where clients have been told their only option is to go sub-prime we have managed to arrange the mortgage for them with a normal high street lender at typical high street lender rates.

 

Your home may be repossessed if you do not keep up repayments on your mortgage.