Bad credit mortgage loans allow you to take out a loan despite a poor credit score. If your debts are up to your eyeballs and you have no other choice because you won’t qualify for a regular mortgage loan, then you may want to consider borrowing from a high-interest rate mortgage loan.

Who are the candidates for a bad credit mortgages loan?

As mentioned, people who are heavily in debt and have poor credit rating more often qualify for this type of loan. Bad credit mortgages loan are similar to standard mortgage loans but the interest rates are pegged at a higher value than the latter. The higher the risk of the borrower, the higher the rate imposed on the loan.

Certain clauses and restrictions also apply in the contract. Case in point: the financing company may impose tighter deadlines on the payment schedule and penalties may be higher than the usual rate in the event of late payment.

Recently, there has been n upsurge in the number of borrowers with poor credit standing. Lenders are quick to meet the increasing demand for loans. In fact, several lenders started offering bad credit mortgages to cater to these types of borrowers. With more options presented by lenders, it is easier for borrowers to apply for mortgage despite their unfavorable credit score.

What are the benefits of a bad credit mortgage?

Aside from the fact that you can apply for a mortgage loan despite your poor credit score, you can also improve your credit rating by making sure that you pay your loan on time. Thus, if you stick to your payment schedule over the prescribed period, there is a big chance of boosting your credit score in the long run. With this new scheme being offered by lenders, you can stretch your finances and be able to meet all your financial obligations.

In addition, you can also use a bad credit mortgage loan to settle your credit card debts. What you can do is to consolidate all your credit card liabilities and other borrowings into just one loan. In this manner, you’ll be paying a single interest rate for all debts as opposed to the different rates applied to your credit cards. This saves you money on the interest rate and also enables you to pay off the debts at an earlier date.

If you plan to take out a bad credit mortgages loan, you should consult a professional to assist you in making an informed decision whether this type of loan will work for you given your situation.

By: Eun Kim

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home mortgages

That has got to be the burning question this month, especially when you consider that the recent study into home buying and selling by the Office of Fair Trading found that estate agency fees could be costing consumers up to £570 million a year!

Negotiation on the increase?

What strikes me as really odd is the fact that no one negotiates their fees with UK high street estate agents. In other countries, the first thing you do when employing an estate agent to sell your property is negotiate – why not in the UK?

Are we really happy with Estate Agents?

Could it be that, funnily enough, although we all complain about the lack of service and the high fees charged, as the Office of Fair Trading reports, “most consumers say they are happy with the service they receive from estate agents”.

RightMove embellish this sentiment saying that “the vast majority of vendors with a property to sell in the UK use an estate agent to market their property” and then they list all the benefits to using one, but what is the reality for the UK consumer and how can paying perceived high fees benefit us? More importantly, are there alternatives?

Another of the other big questions rearing its ugly head this month is on the issue of buy to let. Many people facing retirement are considering buy to let as a good option for residual income and, as property supply and demand play catch up, they need to consider the benefits as investors or look at other options.

To save sending you a long email, we’ve summarised some of the key points here (and found the answer to the $64m question!)…

Will increased competition between high street and online estate agents lower the fees paid?

Either way the estate agent will survive, but not without casualty as competition heats up with their online counterparts and consumers realise that as a consequence of new OFT measures, they can negotiate on fees.

We hope you find this information useful.

By: Jane Van Velsen

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