Bad credit home loans are designed to help people with credit problems to purchase a property. There may be higher interest rates and some restrictions but essentially, the loan is the same as a standard mortgage.
Bad credit mortgages give you the chance to clean up your credit, and you can consolidate all your bills into one, low monthly payment. Many people at various stages in their life find themselves in a position where they require a bad credit mortgage to make a home purchase. Any number of reasons can affect your credit rating, many of them out of your control.
Reasons why people may need a bad credit loan:
- Past credit issues
- Irregular income due to seasonal or contract work
- Self employed with little income documentation
- Have a gifted deposit
- Recently divorced
- Discharged bankrupt
- Don’t want to declare actual income
Bad credit mortgages tend to come with higher interest rates, and the lender may restrict how much you can borrow and how much you repay. The restrictions can be severe, so you must be careful and take your time to look around for the best deal.
However, if you do have a bad credit rating but still want to purchase a property, these loans can offer you a chance to seize your dream. All our mortgage brokers are qualified and experienced in all areas of home loans and therefore are the best people to help you with your home loan needs. We will assess your financial situation and look at the amount you want to borrow, then find a lender that can match your needs with a winning home loan.
To determine if this loan is right for you, look at your credit history. If you have extensive credit card debts, have been declared bankrupt, or have had a mortgage application declined in the past, you should ask about a bad credit mortgage.
If you don’t have endless spare time to run around comparing lenders and home loans, talk to Your Local Finance and let us do the hard work for you. Call us on or fill in our on line form.