The Art Of Finding Mortgages For Bad Credit

As of July 2007, the UK's personal debt level rose to £1,355 billion, which was its highest level ever with an increase of 10.1% on the previous year. This amazing fact, when coupled with the fact that the level of inflation has risen to over 3%, means that more and more individuals will struggle with the debts they already have and will damage their credit records as a result. This would have caused those individuals problems in the past when looking to buy a home, but mortgages for bad credit have a very real place on the market at the moment.

Mortgages for bad credit were born out of societal needs, purely and simply because the housing market would have ultimately suffered. The amount of individuals with bad credit has infinitely risen since the turn of the millennium and so mortgages for bad credit solved a major problem within the industry.

There are any providers that offer mortgages for bad credit so that option is definitely worth exploring if individuals are struggling to get a mortgage on account of their bad credit, or those that know they will struggle when they begin to apply. However, there are some elements of mortgages for bad credit that every individual exploring the option should keep in mind.

The first is the interest rate. Mortgages or bad credit generally tend to have higher interest rates that regular mortgages because of the extra risk factor for lenders. However, the rates vary greatly within the mortgages for bad credit sector itself so it may be worth comparing them before making your choice.

Also, be sure to read the terms and conditions for hidden costs, early repayment fees and clauses that could restrict your freedom to move providers when your credit rating improves. Mortgages for bad credit can actually help you to improve your credit, but be sure to fully check what you are getting yourself into before committing.

http://www.creditaction.org.uk/debtstats.htm

Jason Hulott is Business Development Director at UK Mortgages service, PolarMortgages. Visit Polar Mortgages now for more information about UK mortgages and remortgages.