Is it time for a Mortgage review if you have had bad credit in the past?

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Who remembers Sub prime mortgages? Those mortgages with the likes of GE Money, GMAC, Aldermore, Precise Mortgages, Kensington and so on. High interest rates but they would look beyond negative marks on your credit report.

Although they allowed you to purchase your home and you were over the moon at the time, time has passed. Perhaps the standard rate offered from that lender is too high and not reflective of your current circumstances?

The mortgage market has changed considerably and hopefully there has been plenty of water under the bridge making your previous bad credit a little historic. If your rate reflected your circumstances a few years ago then it is probably worth a mortgage review to see what can be done in todays market.

Have you been paying higher rates for a while? Unable to choose a new product?

The specialist lenders typically borrow money from investors or other financial institutions to lend out to people with poor credit. Once they have lent that money out they then just keep you on the standard rate until your mortgage is cleared or you switch to a new lender. They usually do not offer “retention products” like a bank or building society would.

That in turn means you could have been paying more than necessary after your deal finished and may continue to do so unless you switch to a new lender.

Even if the negative markers are still on your credit report or you have had new defaults/CCJs/arrears etc since taking out the Mortgage, the market has changed a lot and you could still save money with a bad credit mortgage.

Interest rates in the sub prime or bad credit market have dropped significantly, rates below 2.5% are achievable with some specialist poor credit mortgage lenders. During 2018 we also managed to place a lot of people with some historic bad credit with normal high street lenders, meaning rates of below 2% for some of our customers.

Let us see if we can save you some money each month and potentially even get you away from specialist lenders and over to a lender who will be a lot more competitive both now and when your deal comes to an end.

Mortgage Success are a Manchester Mortgage Broker with a national network of lenders to choose from. Being a whole of market broker we can find the best mortgage for your current circumstances, not the circumstances from several years ago when you had a blip in your credit file.

Get in touch and see what we can find for you with a mortgage review.