What does adverse credit mean? How does it effect applying for a mortgage?
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Adverse credit can be anything from a missed payment, those with defaults registered against them, County Court Judgement’s, IVA’s and DMP’s through to Bankruptcy. Even having no credit at all can be a barrier to getting a mortgage sometimes, but we can help there too!
In principle, there is no difference between a standard mortgage and an adverse mortgage. They are the same style of product. The difference is the lenders involved are more lenient than others, and as we work with many specialist lenders in this area, we can help you! How severe and recent the negative items within your credit past are will impact the lenders that will be able to lend for your specific circumstances and the products they have available to you.
By getting to know you and your Credit Report together, we will analyse the information. Matching the details on the report and your personal affordability to a range of lenders who can help. This enables us to give you an idea of if we can get you a mortgage currently.
Once we have all the information from yourself we'll go to our wide panel of lenders and combine your personal circumstances with their lending criteria. By using a mortgage lender who we are confident that will lend based on your details, we'll apply for a decision in principle for you. This also avoids negatively impacting your credit file by approaching lenders that aren't suitable.
Each lender will have their own required documents to further assess (underwrite) the mortgage. These will be items like bank statements, identification, payslips, credit statements etc. We'll help you to get prepared and know what to expect to send in.
A decision in principle gives an indication of whether a mortgage lender will consider lending. Once you are happy it is the right product for you we can take the next step of the mortgage to a full application. We'll then submit the initial documents and based on underwriting the lender may ask for additional information
Services that might benefit you....
Gloucester Mortgage Centre are authorised and regulated by the Financial Conduct Authority, FCA registered (http://www.fca.org.uk/register) under reference 300783.
The Financial Conduct Authority does not regulate Buy to Let Mortgages.
Gloucester Mortgage Centre may charge a fee for arranging your mortgage. Typically £495, the actual fee will depend on your circumstances.
Your home may be repossessed if you do not keep up with the repayments on your mortgage.
Information contained within this website is subject to UK regulatory regime and is therefore targeted at UK consumers.
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