Sometimes things go wrong in life. Whether it’s a redundancy, death of a loved one or just direct debit issues if you fail to keep up your credit agreements, it will affect your credit rating. 
 

Fortunately, this does not mean you can’t buy your new dream house, remortgage or capital raise to refurbish/re modernise your current property.

Lenders are aware that life happens and have created products specifically for this time in our lives to help us through the blip.

Once your credit has repaired you may then be able to lower the rate with another provider benefitting from capital appreciation ( where your house increases in value ) hopefully.

What lenders deem as “Adverse” is missed payments on unsecured loans, missed payments on car finance, missed payments on credit cards and store cards, missed payments on mail order ( catalogues ) mortgages and secured loans.

Some lenders ( but not all ) will disregard some kinds of unsecured lending like phone bills and utilities.

The mortgage process is pretty much similar for adverse lending ( bad credit ) as it is for highstreet lending. They still love to work with self employed people, CIS workers, agency workers along with your first time buyers.

The types of adverse ( bad credit ) that you have will dictate who we will place you with, which is a massive benefit to coming to see us at the Mortgage Lady UK as we are Whole of Market Mortgage Brokers, based in Liverpool but happy to work online if you would prefer.

Here are some of the most common instances of adverse/bad credit; Missed payments on any type of unsecured ( personal loans, credit cards, store cards, mail order, hire purchase ) within the last 6 years.

Defaults; a default is where you have missed payments over a certain amount of time and the lender has decided to add a default to your credit file as you have defaulted on account.

CCJ’s; ( County Court Judgement) In England and Wales, County Court judgments are legal decisions handed down by the County Court. Judgments for monetary sums are entered on the statutory Register of Judgments, Orders and Fines, which is checked by credit reference agencies to assess the credit-worthiness of individuals.

DMP; ( Debt Management Plan ) A DMP is an agreement between you and your creditors for paying back your debts. You pay back the debt by one set monthly payment, which is divided between your creditors. Most DMPs are managed by a DMP provider who deals with your creditors for you.

IVA; ( Individual Voluntary Arrangement ) ( IVA ) is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors.  

Bankruptcy; Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors.

As already stated some lenders will disregard phone bills or utilities and some will disregard if under a minimum amount, mostly £500 collectively.

If you need any further help give one of our expert mortgage brokers a call on 0151 318 1592. We would love to guide you further.