Getting adverse mortgages in the UK
An adverse mortgage is for around 25% of the UK population, the type of mortgage required. In the late 80s and early 90s many people found themselves with negative equity (where the property price is less than the mortgage outstanding) add to that redundancies, as well as other unfortunate personal situations. These naturally gave a lot of people an adverse credit status.
Adversity is something that can happen to any of us at any point in time. However in the areas of finance it used to be a situation where you became an outcast. Bankruptcies, IVAs, defaults, CCJs, missed payments on your mortgage; these are areas most lenders looked on in varying degrees of bad light.
In the UK getting an adverse mortgage used to be a long drawn out process and often meant you had to trawl the high street more or less cap in hand and hope that you would eventually meet the right lender that would take pity on you.
These days adverse mortgages/remortgages are a bit easier to get, I would recommend getting Independent Mortgage Advice, where there are no loyalties to any particular lender, and the advice is for your interest and benefit.
Once you have found an Independent Mortgage Adviser who deals with adverse mortgages, the most important thing is to tell them everything. I would always find out how long they have been in the profession, personally I have done 18 years (time off for good behaviour) and however embarrassing you feel your adverse situation is, I am sure they will have dealt with cases worse than yours. I mention this because a lot of people think that if they don’t mention something then it doesn’t exist, well it does and it will probably turn up. The lender will expect you to be upfront and some will turn down your application if they feel you are trying to get one over on them.
With an adverse or sub prime mortgage as they are sometimes called, the rates are normally higher than the normal, I look at it as a means to assisting you to repair your credit record, if you are able to keep all your mortgage payments up to date for a period of time then your picture will start to look better and more avenues will open up. For example keeping your payments up to date for say 2 or 3 years with an adverse mortgage lender, should enable you to remortgage over to a prime lender and a lower rate of interest on your mortgage.
If you have been turned down for a mortgage or another form of credit you will be told to check your credit report. This can be an indication that you may have adverse credit, although sometimes it can be down to inaccuracies on your report, which you can challenge. If you know you have adverse credit status, then getting the services of an experienced adviser will save you a lot of time.
We advise in adverse mortgages and remortgages and look for the best solution for the person we are advising as well as helping them to repair their credit status for the future. In many cases we can also arrange these on a self cert/non status basis.
Commercial/Self Cert Mortgages
We arrange commercial mortgages and remortgages for companies, individuals, self employed or employed, we can even get this arranged on a self cert commercial mortgage basis.
You want raise cash to consolidate debts, buy new stock or use the funds to further you business, or you may want to buy a new property.
You may have adverse credit status and may not be able to prove your income which can cause a problem. This is where the self cert option becomes useful. Most lenders will require 3 years audited accounts, if you do not have this then being able to self cert your income will assist you greatly.
For commercial mortgages self cert was not an option for quite a while but can be used nowadays. Most commercial lenders have a greater understanding of the self employed market and will take an even view to make sure you can afford what you say you can.
We can use the self cert commercial mortgage option for start ups, if you don’t have full accounts, you have adverse credit, or if your accounts don’t show enough, then we can use the self cert option.
We can cover semi commercial, retail, industrial, leisure etc.
With a self cert commercial mortgage you can declare your income without needing to show lots of proof you earn that income. This would be normally be for self employed people, but we can also use the self cert option for the employed too.
Mortgage Application Form
For a mortgage/remortgage quote please fill in the form below, if you have adverse/bad credit then please read below and then fill in the form.
