Bad Credit, Risks

Getting into debt and suffering a bad credit rating are very real dangers to long term borrowers. Priority debts such as self cert mortgages and secured loans by their nature are ventures with an apparent element of risk. No one can be sure that their financial stability will remain the same for the lifetime of a mortgage or long term loan. Any event such as unemployment and illness can affect your ability to deliver your payments. Even a temporary glitch is enough to trigger mortgage arrears and the associated problems this brings.

If you do not keep up with your repayments you will get a bad credit rating. This in turn can prevent you from obtaining any future credit, such as a secured loan. This is because your rating is checked every time you apply for credit. It would have been checked if you applied for a self cert mortgage but in these cases because your future earning are guessed at and not guaranteed by past wage slips the level of risk is higher for lenders. This results in a higher lending rate and severe penalties if you fall into mortgage arrears.

When applying for any long term financial product like a self cert mortgage or a secured loan you really should bear in mind the amount of risk you are taking and the length of time that you and your home will be at risk. Try to work out a contingency plan in case you fall on hard times and accumulate mortgage arrears to negate a bad credit rating.

You may have taken out protection against redundancy or have a policy which covers you if you fall ill or have an accident. Risk prevention is a far more preferable option to retrospective action against circumstances which have forced you into debt. They may seem pricey but may save you from degrading your credit rating. Of course they will not last for ever so take note of what you are paying for. Check how many months will they pay out. Deal with risks early to ensure you to can don’t fall into debt.

We can not promise you a Mortgage BUT we will listen no matter what your circumstances are.

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ABBEY FINANCE

0845-4567-847

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Actual rate available depends on circumstances ask for personalised illustration. The overall cost for comparison is 7.9% APR. Our representative fee charged is 1.25% of amount borrowed. APR variable and based on a usual case.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE