Mortgages, Remortgages, Secured Loans and Personal Home Loans
27. Bad credit mortgages
Bad credit mortgages allow people with a bad credit rating get a mortgage for the property they want. This debt consolidation product lets adverse credit borrowers , who can not get a mortgage from the high street lenders, gain a mortgage to buy their dream house.
If you don’t need a mortgage a bad credit loan can help you sort out a way to lift yourself out of the mire of debt. However going this route is usually in the form of a secured loan. The security is usually your house. An Individual Voluntary Arrangement (IVA) removes the risk of losing your house so this may be what you are looking for.
An Individual Voluntary Arrangement (IVA) is a legally binding agreement that is drawn up by an insolvency practitioner. Your creditors have to agree to the terms as at the end of the arrangement any remaining debt is written off. It also is a good way of changing your adverse credit.
Bad credit mortgages and bad credit loans are good ways to go about debt consolidation. You have to be aware that the lender is taking a greater financial risk and that they will charge extra for this. However, bad credit mortgages and bad credit loans are becoming more common and the interest charged is not that different from their high street equivalents.
The terms of light, medium and heavy adverse credit are a representation of the level of adverse credit the prospective borrower may have within each product. This may vary between lenders. Individual Voluntary Arrangements (IVA) on the other hand are types of debt consolidation which are fixed by the insolvency practioner. They may come up with a figure that is unacceptable so will have to retune the arrangement to fit all parties, both the borrower and all the creditors.
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