Nov
28
can i still get a mortgage at a decent rate if i have bad arrears problems?
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11 Comments
July 9th, 2009 at 10:37 am
You might want to clean up your credit rating, then think about a mortgage. Some lenders will gladly loan you money at a higher rate but if you wait a while you can get money at market rates instead of letting them gouge you now.
It hurts, but perhaps you need to pay the price for your past credit mistakes by waiting until your rating improves.
July 11th, 2009 at 9:36 pm
yeah if you look around quite a few big lenders will still lend you at good rates don’t be tempted to go to these companies that will take anyone on thou they charge sod loads to set it up then sod loads in interest. try seeing a financial advissor who will know more about where to go and who may take you on
July 12th, 2009 at 3:18 am
HI, i am not sure. Quite often if people have a bad credit rating then only the higher interest mortgages are available. When we went for our mortgage we have our own business but has only been running for 2yrs (need to have 3yrs worth of books) so we had to do self cert which similarly only offered us a selection of higher rate mortgages.
Find yourself a really good mortgage broker and they will find you the cheapest. dont do it through an estate agency linked mortgage as they always offer high rates as standard.
July 13th, 2009 at 4:25 am
Yes. I had an IVA and got behind with that so they looked for a remortgage for me topay them off and a bit for me from the chealsea @ 4.75% or there abouts
July 22nd, 2009 at 4:36 pm
I dont think so
July 23rd, 2009 at 3:09 am
Find a decent broker. There are lots of good deals out there bad credit or not.
July 24th, 2009 at 7:30 am
If you have CCJ’s or poor credit you will generally pay through the nose for a mort as you appear to the lender to be a bad risk.
Try to clean your credit ranting up.
July 26th, 2009 at 1:28 pm
Try they can help with Bad Credit Mortgages, Loans etc.
July 29th, 2009 at 11:10 am
Your odds are best if you have good long conversations with several brokers.
That said, Making loans is a risk-based business. A borrower with shaky or bad credit is at higher risk of default, and other things being equal, is at increased risk of default. As a result, you will pay a higher rate than someone with perfect credit.
You can clean up your credit - it doesn’t have to be perfect, just close to average, in order to get the best rates. You can also ameliorate it with a larger down payment.
Arrearages (late payments) are something lenders take very seriously. Particularly on housing - whether it’s rent or mortgage. Don’t have them.
August 1st, 2009 at 10:25 am
Yes of course u can but you need an expert in mortgages for adverse credit, like me. There are lots of lenders that will take unlimited arrears and ccjs - so if you want any help e mail me. - good luck.
August 4th, 2009 at 5:28 pm
Lender will give you money for sure. Probably charge you a higher interests rate and extra insurance on the loan for not having the down payment or good credit.
Would you consider delaying your plan? Professional investors are careful in choosing each investment that would be near or immediately cash flow positive. With overpriced housing market, that is not possbile.
For example, it costs $500,000 to $550,000 to buy a two bedroom units in Sunnyvale California. Mortgage monthly payment with nothing down is $3500 to $4000 a month with 7% APR. The rent one can collect from such unit would be $2000 a month. Therefore, for each unit you buy, you would lose $1500 a month.
* We assume tax benefits would cancel out with tax and maintenance fee. Please consult your CPA.
**If you have large down payement, the rate may be lowered.
Another important factor to consider, home price may not appreciate as much anymore. In most area of the U.S., housing price stopped going up as inventory continues to build up. It is normal to see a correction as a boom that lasted for several years.
If you are investing new money in to real estate, this may not be a good time as the potential return on investment is small compare to the high risk of lower home price.
If you are doing a side way move, meaning you are selling one to buy another one, then it is acceptable.
Nothing is absolute, but housing market is very likely undergoing a correction and this is only the beginning. Some say this would be a soft landing (0 to 10%). Some say a big crashing is coming (10 to 20%).