Debt in the United Kingdom is at an all time high and is often reported to be in excess of £1 trillion. It is a problem that is increasing and is resulting in many people finding it difficult to keep up with their repayments. As a result of this, it has become common to find people with poor credit histories who struggle to arrange a mortgage.
If you are worried about money problems or if you believe you are in severe financial difficulty, the first thing to do is to seek professional advice. The Consumer Credit Counselling Service (CCCS) is the UK's recognised, leading debt advice charity offering free and confidential advice.
The real facts
A poor credit history can come about by a number of factors, not just previous mortgage related problems. These can include such things as moving home a lot or the lack of a bank account.
It is worth keeping in mind that, to a lender, your circumstances may not seem as bad as you believe they are and you may have much more choice than you currently think. The UK mortgage market is arguably the most advanced in the world and there are many competitive mortgages for borrowers no matter what their circumstances. And, perhaps most importantly, there is no need to go to one of the many bad credit specialists and pay an interest rate which is sky-high.
It is important to realise that just because you have a poor credit history currently, this will not be true forever. Initially, you may have to pay a higher rate for a mortgage, but once you have had it for three years and have managed to meet the repayments each month, you will have effectively written a new credit history - provided you have not accumulated additional debt problems. At this point it is likely you will be able to arrange a standard mortgage.
Expert mortgage advice from a specialist team
Charcol has been working closely with the Consumer Credit Counselling Service (CCCS) to help their customers improve their financial position. For more information about Charcol and its services, please call 0800 066 5575.
Charcol does not charge a fee to help you get the right mortgage. We will talk with you until we fully understand your history of bad credit, negotiate with lenders on your behalf and manage the process all the way to completion. The typical APR for adverse credit business is 8.6% APR.
Alternatively, you can speak to the CCCS on 0800 138 1111 or visit www.cccs.co.uk