What is a Bad Credit Mortgage?

Things such as County Court Judgements (CCJs) or a poor credit history can hinder your chances of getting a personal mortgage because mortgage companies deem you a high risk. Similarly, if you are self-employed, even with a pristine credit history, you may find it challenging to secure a mortgage due to your circumstances, which can be unfair.

However, more and more specialist mortgage companies are becoming sympathetic and able to offer bad credit mortgages to people, as well as mortgages for the self-employed. Many of these companies no longer charge excessively high interest rates as they have in the past, meaning you should be able to get a mortgage and pay a fairly realistic interest rate.

Apart from the obvious benefit of taking out a mortgage for whatever purpose you need it, having a mortgage can actually improve your credit score, making it easier for you to borrow money and get credit in the future. However, you will need to make your monthly repayments on time, and this will help improve your credit score over time.

Of course, when choosing a bad credit mortgage, shop around. While there are understanding lenders out there willing to provide a mortgage without charging you exorbitantly, there are still some unscrupulous mortgage companies. Do your homework: get several quotes, check out the interest rate, and any financial penalties you would be liable for should you pay the mortgage off early. Make sure you are fully satisfied with the amount you are repaying.

### How the Web Can Help You Find a Bad Credit Mortgage

If you have a poor credit history, finding a mortgage specifically for people with bad credit can be difficult. Even if you do find a mortgage, how do you know that it is the right one for you?

Using the internet can help. There is a wealth of information available online about bad credit mortgages, such as free guides, as well as access to providers of bad credit mortgages. Going online also allows you to compare multiple providers so that you can look at all the product features and benefits to decide whether it is right for you.

Additionally, there are websites that accept online mortgage applications, and many offer free and immediate online quotes. This means that you can see how much you can realistically afford to pay for a mortgage.