Bad Credit Mortgage

Written by Jeremy Horelick
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A bad credit mortgage can be elusive, especially in an owner's market. As real estate values continue to soar, and more and more people enter the marketplace, lenders can afford to be choosier about their borrowers' qualifications. In many instances, it may seem next to impossible to find a lending institution that's willing to work with borrowers who have less-than-perfect credit.

But how many people actually have flawless credit in reality? Everyone's missed a payment once or twice on a charge card or had a personal check bounce somewhere along the way. If these lapses--small as they are--were reported to a credit agency, then they're now an indelible part of your credit history. Sure, negative credit items can be cleared up, but this frequently requires mediation or just the passage of time.

Securing a Bad Credit Mortgage

The key to obtaining a bad credit mortgage is finding an intermediary with enough market knowledge to pair you up with a suitable lender. Because so many prospective borrowers do have negative credit items, lending criteria have grown more relaxed, in spite of the rising real estate market. As a result, it's often feasible to find attractive rates, even if you're a first-time buyer. But you have to know where to look.

An independent mortgage company is the best place to start on your journey. Your mortgage broker will have intimate knowledge of hundreds of different UK lenders' rates. With such competition among lenders, it's the first-time buyer who profits most, provided he or she has an accurate picture of the current market, which a third-party broker can help ensure.

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