Lifetime Mortgages with Bad Credit

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If you are looking at Lifetime Mortgages with bad credit, this post should hopefully help answer your questions and alleviate some of your concerns.

lifetime mortgages with bad credit

Lifetime Mortgages which can also be referred to as Equity Release Mortgages are geared towards those over the age of 55. In general the older you are the, the more money you can obtain subject to certain LTV restrictions. There is also an element of your health coming in to play. Surprisingly, the worse your health, the more likely you are to be able to obtain more from your home should you wish – although this depends on your conditions.

Lifetime Mortgage compared to regular Mortgages

Unlike a regular Mortgage where you have to go through the underwriting process which includes affordability and credit checks a Lifetime Mortgage does not really have that process in place.

With most Lifetime Mortgages there is no requirement to make any monthly payments and indeed some do not even allow payments to the Mortgage at all. Because there is no requirement to make any payments, there are no affordability checks.

Likewise, again as there is no requirement to make payments, checking your credit history is not needed. So if you have Defaults or CCJs or a history of missing payments or paying late, it does not impact on getting a Lifetime Mortgage nor the rates available to you.

The only exception to the rule when it comes to Lifetime Mortgage with bad credit could be when it comes to Bankruptcy and IVAs.

Depending on the terms of your Bankruptcy or IVA, there could be some stipulation to make a payment to the Insolvency Service or your credits based on the value/equity in your home. However, this would all depend on how recent your Insolvency was and the equity in your home. It would require careful management and it is something that your broker could investigate further should it be a concern

If you would like to have a chat about Lifetime Mortgages with bad credit, do please get in touch where we will be happy to help and point you in the right direction.