Mortgages, Remortgages, Secured Loans and Personal Home Loans
18. Source a mortgage from your standard high-street lender
If you suffer with adverse credit, it can prevent you being able to source a mortgage from your standard high-street lender. There are however specialists who can offer you a bad credit mortgage. This like bad credit loans and Individual Voluntary Arrangement (IVA) is a form of debt consolidation.
Be very careful when applying as each time you make an enquiry the potential lender will treat your enquiry as a mini application. This involves a quick credit check on you, even if you are contacting them by phone. Their check will be seen by other lenders who will assume the enquiry you made to a rival meant you were turned down. This will make your adverse credit look even worse.
Bad credit loans and bad credit mortgages may charge higher interest then the mainstream alternatives. This reflects the greater risk the lender is taking. If you have substantial debts of over £15,000 your safest course of debt consolidation will be taking out an Individual Voluntary Arrangement (IVA).
This is a legally binding agreement which means your creditors have to back off and they are not allowed to add more interest or charges to your account whilst you are under the agreement. It also lasts for around five years so is not interminable. However you do need to be able to pay off at least £200 per month. If this does not sound right for you then the other options to use debt consolidation to get you out of adverse credit are probably better for you.
Individual Voluntary Arrangements (IVA), bad credit loans and bad credit mortgages are all ways to start you on to the road out of debt. Shop around and see which financial product is the best fit for you to get out of debt and repair your credit rating.
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