Bad Credit/Previous Bankrupt

Obtaining a mortgage with poor credit may seem like an unachievable task. Having a weak credit history continues to be the primary reason why consumers are turned down for a mortgage. However, over the last few years there are now many new and innovative products being offered by lending institutions that fit every credit profile, good and bad.

In todays market, borrowers can choose from a large number of special products that are designed specifically for those people with some form of impaired credit history. These mortgages do not differ vastly from other mainstream mortgages - you can now have access to discounted, fixed or variable mortgage options.

The underwriting approach in cases of “less-than-perfect credit” is different. Rather than using an automated credit scoring system, most lenders adopt a case-by-case approach. A non-conforming lender is more likely to lend to an individual, but is more likely to be conservative in terms of the amount that they are willing to advance for the loan. These ‘non-conforming’ lenders are usually more demanding in terms of the size of the down payment and maximum loan to value, for your chosen property.

For more information with regards to your options please contact one of our experienced Mortgage Consultants at Mortgage Brokers City.