Mortgage Arrears, bad credit ratings

Buying a house is the most expensive thing most people will ever do. If you have a self cert mortgage it is very easy to slip behind on your repayments. However, mortgages are classed as a ‘Priority Debt’ which means repayments take priority over all lesser loans and your house is in jeopardy if you do not repay. Secured loans are also classed as priority debts. This is because when they were being arranged the lender gave you the loan on the proviso that your assets, like your house is surety against mortgage arrears.

If you have a bad credit rating it is very unlikely that you will be awarded with a self cert mortgage or secured loan. This is because the rating shows you up to be a bad credit risk. This means potential lenders would be taking a rather large risk if they chose to do business with you. The rating indicates that you had financial problems in the past. This could have been falling behind on loan repayments or finding yourself in mortgage arrears. In each case the unreliability of you as a customer in paying a regular sum back to the lender comes under scrutiny.

If you are thinking of applying for a secured loan or a self cert mortgage, check first that you have not got a bad credit rating or outstanding mortgage arrears. This quick check could save you time and money in the long run. You should try to learn when to approach the market to increase your likelihood of securing credit. Applying for and being turned down for credit can be disastrous to an already precarious credit rating.

Count up all you owe and ensure you have the funds to regularly pay off your monthly amounts for loans and mortgages. Pay the amount promptly and develop a history of good payment practice. Look after your financial reputation and keep track of all your commitments. In this way any lenders will be quite assured that you are a good credit risk and well worth lending to, to purchase the house of your dreams.

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

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ABBEY FINANCE

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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