The Truth About Bad Credit Loans And Mortgages

Many people will have the experience of facing financial difficulties at one time or another for a variety of reasons. Being a little short of money can result in you falling behind with bills, bank loans, credit cards, mortgage repayments and alike.



This in turn can lead to having defaults, County Court Judgements (CCJ's) and even bankruptcy. Even if the problems are short lived they can still tarnish your credit record and make it difficult for you to obtain finance.



There are no accurate figures on the amount of people that get turned down for a mortgage from a high street lender, but it is widely estimated that it is about 1 in 5.



Generally this is due to minor misunderstanding and can often be resolved. But even after this it is estimated that one in eight people will not be able to get a main stream mortgage and have to go to a specialist lender.



Why Do People Get Turned Down For Credit?



There are a number of reasons and situations for which someone will be turned down for a mortgage. It may simply be that the applicant has put down some incorrect details on the application form. Another reason might be that your previous landlord did not bother to confirm that you used to pay the rent on time.



Another more serious reason that people get turned down for a mortgage is that they do not have enough credit points. When you apply for a mortgage the lender will carry out a credit check on you.



You will gain credit points for a number of reasons for example if you have had the same address, job and bank account for a long time. Also people that keep up to date with repayments will gain points as well. But you will lose points if you have defaulted on debts, fallen behind with bills, have CCJs or have been made bankrupt.



What Can You Do If It Happens To You?



If you do get turned down for a mortgage or loan the first thing you should do is find out why. If you did fail a credit score the lender may not tell why, the credit agency that they used will know. It may be a mistake on their part, or an old default that should no longer be on your file.



The best thing to do is to get hold of your credit record from one of the agencies. The three main agencies are Equifax, Experian and Call Credit. If there is some kind of mistake then you can get it sorted.



Another reason that you may get declined a mortgage or loan is because you have not built up enough credit history. If this is the case then it might be an idea to take out a couple of good credit cards (there are always good deals to be had). Use them to purchase things and pay them off straight away.



What If You Have Had Serious Credit Problems?



If a high street lender turns you down for a secured loan or mortgage, then you will need to look towards the sub prime or bad credit market place.



These specialist lenders have a vast array of bad credit loans to cater for people in a variety of different situations. Whether it is just a defaulted credit card that happened 12 months ago for ฃ300 or a recent CCJ for which you still owe thousands. Whatever your situation is the chances are you will be able to find a lender.



Generally the worse your credit history is the higher the rate of interest you will pay, this is because you pose a higher risk to the lender. For example if you have two CCJs you will pay higher rate than someone who has a single default.



The good news is that you have plenty of choice, there are thousands of deals out there for people with credit problems.



The easiest way to find a deal and suitable mortgage or loan product is to use a broker. The broker can carry out a credit search and based on the results they will be able to determine what your best options are. The majority of the bad credit lenders are not household names. Some of these lenders are owned by American companies and others are subsidiaries of high street lenders.



Getting The Best Deal



As previously mentioned the worse your credit history is, the higher the interest will be. If you have a light bad credit history, then as long as you keep up with repayments then you might be able to switch to a mainstream deal after two years.



If you have heavy bad credit history then you may have to wait three years before switching lenders. So for this reason it can be advisable to avoid products that tie you in for long periods.



So when the deal comes to an end, and you have kept up with your repayments you should look to move to a standard deal, possibly with a high street lender.



Hopefully by this time your bad credit history will be long behind you.

What is the right kind of mortgage for you ?

Copyright 2006 Vincent Wilmot



If you need or want a mortgage, then you can easily get a

mortgage that is not the best one for you. Mortgages are often

missold by sellers claiming to be experts. One day they all push

Endowment mortgages, then Repayment mortgages or Low Start

mortgages or Overpayment mortgages or Fixed Rate mortgages or

Offset mortgages - and each type will also have different

interest rates available.



For any one kind of mortgage, lower interest rates are best of

course. But different kinds of mortgage may best suit different

people, though they may not have the same interest rates. For

some a mortgage is the only way they can afford to buy a

property, but for some a mortgage is profitable cheap money

costing maybe 5% net to free-up other money for investing at a

higher return maybe 10% net.



Good mortgage calculators can help you choose the best mortgage

for you, but many or the mortgage calculators available are

little help.



But first let us look at what kind of mortgage may

best suit you ;



Savings and income small. A normal Repayment mortgage should be

best if you can get one for the property that you want and you

can afford the payments. (Some sellers may help on a deposit or

furnishing, or offer Shared Ownership or Homeown schemes.)

Otherwise, if your income is likely to be rising then a Low

Start mortgage might allow you to buy a better property or to

have lower payments.



As an alternative to a low start mortgage,

a young new graduate might reasonably consider a permanently low

payment endowment mortgage linked to a pension, though at the

end of it gambling whether some net lump sum may be collected or

may be owed.



Savings small and income large. A normal Repayment mortgage

should be best if you can get one for the property that you

want. (Some sellers may help on a deposit or furnishing.) An

Overpayment mortgage will be better if you prefer to pay off

your mortgage early, but an Offset mortgage linked to your

current account could help with that more cheaply.



Savings large and income small. A smaller Repayment mortgage may

be best, but if you can invest your money at a better net return

than the mortgage interest rate that you can get then you should

get the biggest Repayment mortgage that your income can

reasonably afford.



Savings and income large. If you can buy the property you want

without a mortgage, then only get a mortgage if you can invest

your money at a better net return than the mortgage interest

rate that you can get - and in that case get the biggest

Repayment mortgage you can afford.



Initial mortgage payments must be affordable for you, leaving

enough of you income for normal bills and expenses. (If your

income is small then a mortgage taking 30% of your income may be

difficult for you, but if your income is larger then 50% of your

income may not be difficult for you.)



Mortgage payments in later years. The actual money cost of a

normal 'variable' mortgage is fixed for the life of a mortgage

IF interest rates do not change, so that the real cost tends to

fall in later years.



BUT if interest rates rise then the money

cost of your mortgage could rise a lot for a year or two and

make it difficult to keep up payments. Many partly 'insure'

against this by taking a slightly dearer mortgage with the first

few years held at a fixed interest rate. And if sickness or

unemployment might make paying a mortgage difficult, then this

can be insured against.



If you want to buy a property as an investment to rent it out,

then you may need a commercial Buy To Let mortgage needing a

deposit of 15% or more unless you can find a seller offering a

deal that helps with that.



But if you are already a landlord

owning multiple properties, then you may be better suited with a

specialist lending arrangement rather than individual mortgages.

Best mortgage rate in Manhattan

Manhattan, New York real estate industry is on a continued upward trend. Prices are soaring high to the level quite difficult for some middle-income families. Thus, demands for multifamily units are increasing to a significant number. To help consumers who are interest to realize the greatest American dream, it may help them if they can find the best mortgage rate in Manhattan, NY. This will help buffer the high cost of properties in this State. Finding the best mortgage rate in Manhattan, NY is the reason why multifamily and even single unit residential houses continue to outstrip its supply.



Some professional real estate brokers are able to help New Yorkers find the best mortgage rate in Manhattan, NY, thus enlivening the real estate industry in this side of the Big Apple. On the other hand, commercial real estate demand is also high and for this reason, there is more need for the best mortgage rate in Manhattan, NY. Manhattan, NY Bankers and mortgage companies are quick to pick up the trend that made them offer the best mortgage rates.



Acquiring properties through mortgage loans help consumers realize their dreams. Especially if the property you acquired is in the Big Apple, there are significant economic and personal opportunities available to you. For this reason, bankers and lending institutions design the best mortgage rates in Manhattan, NY, to help those who want to live here.Various mortgage programs are available such as Fixed Rate Mortgage (FRM) or Adjustable Rate Mortgage (ARM).



Because of the variety of programs available in each mortgage type, consumers need to seek assistance from mortgage counselors to help them choose the best program that suits their capacity to pay. There are 30-year terms, 20-year terms or 10-year term. You may choose from fixed monthly payments or balloon mortgage payment. Your earning capacity including your normal monetary requirements needs to be considered before embarking on a mortgage contract.



 This is because if you cannot pay your dues regularly, you may risk loosing your property to foreclosure. Thus, acquiring a loan that is putting your property on the line may need intelligent decision-making. If you have experience in mortgage transactions before, going into another mortgage contract may be easier for you. However, for those who are new in the mortgage lingo may need all the help from mortgage counselors. In this case, one of the most reliable and dependable mortgage companies maybe what you need.

High Risk Home Mortgage Lenders Online - Using Online ServicesTo Find A Bad Credit Lender

Using an online service, such as a mortgage broker, can help you

find high risk home mortgage lenders with the most competitive

rates. So even with bad credit due to a bankruptcy or

foreclosure, you can still buy a house with your budget.

Shopping online for home financing also allows you to tailor

your loan terms to best meet your housing goals.



What Online Services Can Do For You



Online mortgage broker sites consolidate a lot of different

mortgage information into one easy to use site.



By entering your

basic information once, you can receive the three top loan

offers from competing lending companies.



Within the one site, you can make side-by-side comparisons on

rates, fees, and terms. You also have the option to apply online

for your home loan, saving you additional time.



Broker sites can also save you money through the special deals

they sometimes negotiate with financial companies. Even with

their fees included in the loan's cost, you can save thousands

of dollars through lower rates and closing costs.



How To Use Find A Lender Online



To get the most out of an online mortgage broker site, start

with an idea of what type of loan terms you would like. If you

are unsure what type of financing is best for you, get some

trial quotes to see what payments and interest costs will be.



Don't rely on these preliminary quotes to choose a lender

though. You will find that one lender may have the best

fixed-rate mortgage rates, but another lender offers better

terms on adjustable-rate mortgages.



Base your lender choice on quotes for your specific type of

loan. Even with these quotes, be open to negotiating better

terms. For example, some fees, such as early repayment fees, can

be waived for a point paid at closing.



Act On A Good Lead



Once you find a financing package that looks good, complete your

application. Rates change all the time, so quotes become

outdated in less than a day's time.



With most lenders, you home financing can be completed in less

than two weeks' time.