In the world of financial services, having a bad credit history is a messy business. Because lenders don’t really want to lend to bad credit cases (and have to insure themselves when they do), these clients end up paying more than ordinary clients- which seems rather unfair, as people with credit problems are exactly the sort of folks who could do with a lower interest rate, not a higher one.
Well, all is not lost. Far from being outlawed to the shed at the bottom of the garden, these days, there are companies who specialise in bad credit cases; and the differential in rates between a bad credit mortgage and ordinary mortgages has reduced significantly. Companies you should consider include IGroup, National Guarantee, Future Mortgages and Jim Whites. Furthermore, many mainstream lenders also have bad credit mortgage products, including the Bristol and West and Market Harborough BS.
One important new distinction to make is that between a bad credit mortgage and a non-status mortgage. If you have county court judgements, bankruptcy or a black mark with a credit agency against you, then you are a bad credit customer. If however, you are self-employed, self-certified (i.e. don’t have accounts to back up your income claim) or a company director, you used to be considered a bad credit case. These days, you are called “non-status” (lucky old you!). Recognising that modern economics delivers plenty of people in this situation, many of whom are not just reliable payers but the very backbone of business, non-status products are often indistinguishable from ordinary mortgages, and you can expect as wide a range to choose from as the ordinary employed person.
