Entry

How to get a mortgage if you have bad credit

Jul 24th, 2008 11:36
Sergey45, Mark Gomelli, http://www.breadmarket.co.uk/property/bad-credit-history-mortgage.php

http://www.mortgagerefinancing.24by7info.com
Most mainstream lenders would be reluctant to give mortgage loans to 
people with a poor credit rating due to the high risk involved. 
Therefore, you need to approach specialist lenders otherwise known as 
sup-prime mortgage lenders. 
However, going directly to a lender is not a good idea. This is so 
because every lender you approach, even for a simple enquiry, will run 
a credit check on you, having many checks made against your credit 
record in a short period of time makes your credit record look worse.
The best thing to do is to go through a mortgage broker as they can 
get quotes from multiple lenders at the same time. However, before 
dealing with a mortgage broker, be sure to check the following:
• How many sources of loans do they have. Some mortgage brokers only 
use a couple of lenders, while others will look at 10 to 20 different 
possible lenders. The more lenders that a mortgage broker is willing 
to work with, the better your chances of getting a better deal. 
• How the mortgage broker is getting paid for their services. Ideally, 
they should be paid a commission fee by the lender, in which case they 
wouldn’t charge you. Also, be sure to ask for a list of all applicable 
fees. 
• Ask the broker how they compare mortgages and how they will 
determine which is the best one for you. Its important to know whether 
the broker has your interests at heart or if they’re just selling the 
deal that will earn them the most comission. 
Mortgage brokers can be found online, however, its always best to deal 
with a reputable broker. If you cannot get a recommendation, you can 
learn about their reputation by asking for references from past 
customers.
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In the UK, bad credit mortgages may be refered to as IVA mortgages, 
although the two are different. To learn about iva mortgages see: 
http://www.breadmarket.co.uk/property/iva-mortgage.php