Bad credit doesn’t mean bad mortgage
June 1, 2007 by admin
Filed under News, News-Mortgages
It is something that occupies the minds of many young adults today but a leading mortgage broker claims that bad credit need not mean higher mortgage rates.
London and Country (L&C) claims that 71 per cent of people with credit problems who have visited them have walked away with a mainstream mortgage deal.
This is despite the borrower’s belief that he or she will be hit hard for a previous bad record.
L&C admits that most lenders will not deal with people who have recent defaults and County Court Judgements but points out that the situation is never black and white.
It is possible that some lenders will be more lenient than others and the broker claims that many people with only minor blemishes may be surprised by the kind of deals available to them.
“All too often, people assume that because they’ve had some credit problems in the past, they will have to pay a much higher interest rate and in some cases, high broker fees,” said James Cotton, mortgage specialist at L&C.
“In fact, our research shows that by getting whole of market advice from L&C, borrowers can seek out the best deal for their circumstances and can often secure a better rate than they thought possible.”
The news will be welcomed by first-time buyers, many of whom are of the belief that they will have to wait years until they can get a mortgage.
