Tel: 0845 458 2633
A bad credit mortgage is one where you have had suffered some sort of debt problem which could include regular late payments for a loan or credit card, County Court Judgements (CCJs), due to non payment of a bill, arrears or defaults on your mortgage or an Individual Voluntary Agreement (IVA) or bankruptcy.
Bad credit mortgages can also be known as adverse mortgages, sub prime or credit impaired mortgages. Many more people nowadays have had some form of bad credit and as such there are now many more lenders able to help and offer products from the very light adverse to unlimited adverse.
Should you require a bad credit mortgage you will require a deposit of at least 10% in most instances although there are a couple of lenders that can lend up to 100% of the mortgage but this is subject to how long ago you had problems with your credit and what these problems were.
Because there are now more lenders including both High Street and Specialist lenders the non conforming market is much more competitive but you may still have to pay a slightly higher interest rate than you would otherwise be charged for a regular mortgage. The choice of mortgage products is the same as that of regular mortgages so you can still choose from fixed, tracker, capped, discount and flexible rate bad credit mortgages and bad credit remortgages.
The overall cost for mortgages for comparison is 6.5% APR. The actual rate will depend on your circumstances. Please ask for a personalised illustration.
Adverse Credit Mortgage Comparison | |||||||
|---|---|---|---|---|---|---|---|
| Lender | Rate | Term Type | Std Rate | APR | Fee | Early Repayment Charges | Max Loan to Value |
| Beacon Homeloans | 8.08% | 3 year fixed | 8.60 | 9.10 | 2% | 7% year of loan amount for 3 years | 65% |
| Accord | 8.70% | 2 year discount | 8.70 | 9.00 | £995 | 6% of loan amount in year 1; 5% in year 2 | 75% |
| I-Group | 9.04% | 4 year fixed | 9.69 | 10.01 | £1995 | 7% of loan in year 1; 6%, year 2; 5%, year 3; 4%, year 4 | 80% |
Adverse Credit mortgage price comparison, last updated Thursday, 7th August 2008
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
This site is intended for UK residents only. The overall cost for mortgages for comparison is 7.4 APR.
The actual rate will depend on your circumstances. APR variable and based on a usual case.
Grovelawn Financial is a trading name of Grovelawn Limited, which is authorised and regulated by the Financial Services Authority.
Grovelawn Limited is Registered in England & Wales number 5030300. Registered Address: 98 Station Road, Sidcup, Kent, DA15 7BY.
Entered on the Financial Services Authority's Register — Register Number: 314204 — Consumer Credit Licence Number: 573287
The Financial Services Authority (FSA) do not regulate some types of buy to let, commercial, overseas mortgages, tax advice and credit or loans not secured on property.