Bad Credit Mortgages

Obtaining a mortgage or a Remortgage is a very time consuming, frustrating and stressful undertaking in todaybs mortgage market.B Since the Mortgage Market Review that came into effect in April 2014, lending criteria has become much tighter with forensic examination of income and expenditure to deduce what the lenderbs software concludes is an applicantbs baffordabilityb.

In addition to this, with the withdrawal of self-certification and the tightening of applications for applicants with adverse credit history, the overall task of securing a mortgage offer has become much more onerous.

Compounding this, most banks have either stopped providing an in-house mortgage adviser in each branch or have swapped to either one adviser per six or so branches or, telephone mortgage advice which is quite unsatisfactory when making arrangements for what is probably the applicants biggest purchase and financial commitment. In either case, access to mortgage advise is greatly reduced via the bhigh streetb bank route.

Worse of all, the bankbs lending criteria is very restrictive and there is little interest in self-employed applicants or those with missed payments to credit card / communications provider accounts or CCJ / defaults.

This is where a mortgage broker can assist.

At Central Mortgages, we have access to all lenders and have specialist lenders that do not just rely on what the computer says, but take into account the whole application. We deal with lenders that accept applicants with CCJs, defaults, arrears and ex-bankrupts.

B Here is a typical scenario:

Ms. H

Has a CCJ for B#900 from 2011, another CCJ for 2012 for B#800 and another from August 2013 for B#600.B Not a very good prospect for the High-Street bank.B Ms H approached Nationwide who agreed in principle but declined once the full application was made.B Ms H was referred to Precise Mortgages who also declined her application. Ms H is employed with a good income but has incurred these CCJs following a relationship split.B Central Mortgages has obtained a mortgage for Ms H at 2.41% fixed for two years at 75% of the property purchase price.

The whole process to obtain the offer took 13 days from application.

Next case is Mr B who lives on floor 8 of a 12 floor block of flats.

Mr B wants to Remortgage his residential property to purchase a flat as an investment in the same building. The first lender declined Mr Bbs application as they did not want too much bexposureb in one block of flats.B The second lender would not lend because the property had more than five storeys.

Lender three did not want to lend as Mr B was a firs time landlord.

Central Mortgages found a lender that would lend on the Buy to Let purchase as well as the residential property thus avoiding additional work.

Whilst the banks advertise that they are keen to lend, the reality is that their lending criteria is so inflexible, many borrowers are outside of lending criteria and cannot obtain the mortgages that they require.

At Central Mortgages, we can often assist where the high-street banks cannot.

Please feel free to call us with your requirements and we will do our best to help you.