Sep 06 2010

County Court Judgements And Bad Credit Mortgages

Category: Uncategorized — Sarah @ 6:33 am

A County Court Judgement is an order by the courts for one party to pay an amount owing to another party. County Court Judgements, or CCJs, affect people’s credit files and will normally require the applicant to abandon the prospect of applying for traditions mortgage products and instead apply for bad credit mortgages.

When the order is given by the County Court, the creditor will be required to repay the debtor within a specified period of time. If this is not done, a County Court Judgement will be recorded on the creditor’s credit file. This entry can remain on the credit file for six years if it is not settled in the meantime. Having impairments to a credit file such as CCJs can make it extremely difficult to obtain standard mortgages from high street lenders.

Because County Court Judgements are so common, a large number of people are unable to apply for standard mortgages. This could be viewed as unfair as CCJs can be recorded on a person’s credit file for trivial amounts of money and sometimes without their knowing. The massive growth in the number of people who suffer from this form of adverse credit has lead to incredible growth in the market for bad credit mortgages in recent times.

In addition to mortgage applications being affected by outstanding County Court Judgements appearing on a credit file, CCJs that are paid in full at a later date can remain on the credit file for up to six years. Lenders will therefore be able to see that there was once an outstanding debt despite the fact that is has since been cleared. Although the entry will indicate that the debt has been settled, it may not be removed completely. This means that a person may be forced to apply for bad credit mortgages several years after paying off their County Court Judgements.

Many lenders will now consider mortgage applications from people who suffer from bad credit. In fact dozens of specialist lenders that focus solely on bad credit mortgages have appeared in recent years so individuals who have bad credit will not necessarily be unable to buy a home. Although the recent credit crunch has seen such lenders dwindle in numbers in recent times, specialist lenders still exist and offer mortgage products.

Because the market for bad credit mortgages is highly specialised and many of the lenders are too small to open their own branches to the public, it may be necessary to apply for bad credit mortgages through a mortgage broker.

An independent mortgage broker will be able to search the entire market for bad credit mortgages using special software. This can save both time and money when compared to searching for a mortgage on your own because an independent mortgage broker will have access to the entire mortgage market and will be able to find the most suitable bad credit mortgages to suit your personal situation. If you require a bad credit mortgage product contact an independent advisor today for impartial advice.

Get expert advice from impartial Mortgage Advisors on various home loan products including Bad Credit Mortgages today at UK Mortgage Source

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Sep 05 2010

A Short Guide To Applying For Mortgages

Category: Uncategorized — Sarah @ 6:40 am

Applying for a mortgage is not an easy thing to do, especially with the way the property market is working today. It is far more risky to contemplate buying a house of your own let alone actually going out there and buying it. There are however help available for people looking to buy for the first time rather than leaving it to chance that you will eventually be able to afford a house. The first step you would need to take is to compare mortgage rates between lenders.


When you compare mortgage rates, you will be able to get a good idea into how much on average you would be spending to pay off your mortgage. This will help you to calculate how much you would spend on top of the mortgage repayments, such as electricity bills, water and council tax. These are all contributed towards the payment, and can amount to a lot of money per month; therefore, it is vital that you calculate in advance how much you can afford to pay.


Whilst you compare mortgage rates, you will notice that different mortgages have different lengths of time for repayment plans. Depending on how quickly or slowly you will need to repay the mortgage; the interest rates will vary with monger term mortgages being more expensive. This is where you will need to calculate whether you can afford to pay the mortgage off in ten years or twenty-five years (or in some instances, it may take thirty-five years).


Whatever you choose, initially it may seem that paying it off quickly will seem more expensive and your outgoings will be high. However, you must remember to keep track of how much you pay off and calculate your outgoings realistically. As mentioned before, paying off the mortgage is just one milestone; keeping up with the all of the overheads is another milestone. People have made the mistake in jumping in and buying a house without any consideration to the monthly costs.


Before making an application always consult a mortgage advisor, they will help to calculate all of your existing outgoings, along with any debts to pay off against how much you are earning on a monthly basis. Mortgages are usually calculated by, multiplying your annual earnings by three or four; however, in some places you can be eligible for more. Some can apply for graduate mortgages provided they have graduated within five years of applying.


Other types of mortgage deals include paying off the interest only, aptly named as an interest only mortgage. With these kinds of mortgages, there is no guarantee of paying off the entire from the lender, as when you pay off the interest you are also putting money away in an investment savings account. If all goes well you should be able to pay off the mortgage, however, this may not work out as perfectly as you would want.


There are also first time buyers mortgages, in which lenders will allow people with little or no deposit to put down and are looking for a home to buy. It is not recommended for a graduate mortgage, which is a one hundred percent mortgage. This will work out to be more expensive and you will run the risk of falling short of payment each month. It is always best to try to save for a deposit rather than taking a risk such as this.


The key is research, research and more research. You would rather be over prepared than falling into something that you cannot afford in the long run. Spend time to compare mortgage rates so then you can become familiar with the property market.

Anna Stenning is an expert for helping people to compare mortgage rates, and researching the property market herself.

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Aug 17 2010

Mortgages Investing in the Future

Category: Uncategorized — Sarah @ 1:49 pm

Property is one of the biggest investments you could ever make in your life, and unless you have a great deal of money you will have to take out a mortgage to pay for it. Mortgages are a long term loan that is used to pay for houses and other properties that can be applied for by anyone who is over the age of eighteen and in employment. However there is an application process that must be gone through and successfully completed in order for mortgages to be granted.

When you are looking for mortgages you should be aware of certain information that you will have to supply and prove in order for your application to be successful. Here is what you should expect to be asked:

• Your personal details and the personal details of anyone applying with you– name, date of birth etc. These are asked so that the lender firstly knows who they are dealing with.

• The mortgage amount – all mortgages are different amounts so you should first find out the price of a property that you want to get a mortgage on. Many people when applying for mortgages don’t always have a particular property in mind but a price range that they could afford to pay.

• The term of the mortgage – this varies between mortgages and lenders, although the average term is 25 years, however this can be as low as 15 years and as high as 35 years.

• The type of mortgage you are looking for. There are many different mortgages on the market from repayment to interest only and each one of them has its benefits and drawbacks. You need to choose the one that suits yourself the best.

• Your employment status – this is checked and recorded as anyone applying for a mortgage needs proof of income from which they will be making their repayments. Do not be tempted to inflate your salary as this will be found out as you will asked at a later stage to provide your lender with wage slips and even bank statements and any false information will be found out.

• Details of your credit history. You can put any information relating to your credit history when you are applying for mortgages. Your credit score will be used to assess your credit worthiness when making any financial application, and each time you apply for a mortgage it will be recorded on your credit history.

There are other details that will be required when applying for mortgages, but these are the main points that you can expect to be asked.

As soon as you are successful in your application you can go ahead with your mortgage offer and put a bid in for the property that you wish to buy. This is then either accepted or rejected by the seller. If your offer is accepted you can then inform your solicitor who will then start the proceedings and inform your mortgage lender. You will then start to pay your mortgage payments one a mutually agreed date. You will then continue making these repayments until you either pay off the loan amount, or you decide to move house – by which time you might be looking at other mortgages on the market. Some people even decide to look at different mortgages for the property they are in if they want to re-mortgage or find a better repayment rate, however it should be noted that many mortgages have a set period of time in which you are tied to that particular mortgage, after which you can look elsewhere.

Mortgages are a big investment so you should seek help from the professionals. Here at Go Direct we have online mortgage advisors such as Jason Jones who are available to guide you through the process of choosing mortgages to find the right one for you.

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Aug 12 2010

In Depth Look at Bad Credit Mortgages

Category: Uncategorized — Sarah @ 3:38 pm

The word ‘bad credit mortgages’ is one word that many borrowers try to avoid but some or the other way find themselves trapped in the situation. If you have a bad credit history, there is nothing to worry about when you have to finance your house. You can consider bad credit mortgages to get through this situation.

What are these Mortgages?

Other terms for these mortgages are adverse credit, subprime mortgages and impaired credit. These mortgages were designed for those borrowers, who have a low or bad credit history. There are mainly three basic stages of these mortgages such as light, adverse and heavy. The cost of these mortgages determine in which category of mortgage you may belong.

Need of such Mortgages:

Bad credit mortgages serve as your last resort of loan with a bad credit score. The reasons for why your credit score is bad are either you have been defaulted or have been late to pay your debts. The cause of your bad credit score may also be due to late payment of credit card bills, mobile phone bills or even tax payment. Due to these reasons, the judgment of the court may go against you. More number of judgments against you, the more it affects your credit score and higher are the level of mortgages you need.

It is not necessary that it is always your fault, in case you have to apply for these mortgages. Sometimes, certain situations like collapse of business, illness in family or divorce are reasons, due to which you may have to apply for these mortgages.

There are differences between such mortgages and standard mortgages. The main difference is the cost factor. Bad credit mortgages may be more expensive than the standard mortgages, depending on your circumstances. These types of mortgages require large deposits compared to standard mortgages and you may be at high risk in the eyes of lenders. Such mortgages may need you to pay huge upfront fees, which is not necessary in standard mortgages.

Applying for These Mortgages:

It is an easy process to apply for such mortgages, but you need to be aware of all the terms before applying. Try to look for mortgages that do not have any tie-in procedure for more than three years. There are various institutions, where you may apply for these mortgages and it is best to apply in a government certified institution rather than a private lender. Go through all the terms and conditions properly and check for the interest rates too.

However, it is not necessary that you have to stick with bad credit mortgages for your life. All you need to do is show some proof that you are able to repay the loan successfully for a particular period, say about three years, and then you are eligible for a cheaper mortgage.

Other way of getting rid of your mortgages is by paying up all your monthly credit payments on time, so that your credit score increases. This may take some time, but the method will surely help in getting rid of mortgages.

Find secured credit cards and more Tom’s work at FINDsecuredcards.

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Aug 09 2010

Applying For Mortgages For First Time Buyers

Category: Uncategorized — Sarah @ 4:38 pm

If ever there was a time to buy a house for the first time now would be a good time. However, with the prospects of a price crash looming ahead, it may well be more possible for first-timers to finally find their feet on the property ladder. Many people will know that to buy a house now is to be financially stable and preferably with a substantial amount of deposit up front. Taking the 100 percent mortgage rate route is a risky step therefore people will need to find a way to save for a deposit.


The best way to find a good mortgage rate is to compare mortgage prices through plenty of researching. This may seem like a job that would take up most of your time on the internet, but without prior knowledge of mortgage rates and repayment options you are more likely to encounter plenty of financial difficulties. The problem that many people have faced when applying for mortgages is that they have applied for more than they can pay off in a month.


When you compare mortgage rates, you will find that banks or lenders offer more than just the mortgage. Often they offer insurance, capital only repayments, interest only repayments, capital and interest (standard), fixed interest payments or flexible mortgage repayments. Each of which the borrower will need to have looked into before putting all of their eggs in one basket. The way to compare mortgage rates is not just look online but to talk with professionals who have experience within this field, such as estate agents, lenders or banks.


Other ways to do this without feeling the need to buy something or agree to something is to read up financial articles from experts in this field. This may include going onto specialised websites on mortgages, which allows people to gain tips and advice on the best approaches to choosing something that will benefit them and not compromise their repayment abilities. What first-time buyers must understand that the market is always changing, therefore, interest rates will fluctuate and relying solely on your income is not the only way to maintain your financial position.


In the good old days of saving for a deposit and applying for a mortgage to buy a house, all people would have to worry about was working to keep the mortgage payments coming for their house. These days it is not as simple as holding down a normal 9 to 5 job just to pay off your mortgage, a lot more emphasis is placed on watching the market and seeing how your money will grow. A home is not just a home; it becomes an investment opportunity or asset. Therefore, one would need to make a careful decision about the kind of house they buy, in what location and whether it will prove to be an investment to them.


For those who have a bad credit history, there is light at the end of each tunnel they travel down. When you compare mortgage prices for people with difficulties in gaining any credit help, a lot that is offered usually proves to be more stretching than what it was from the beginning. The best thing to do is to make savings for a deposit substantial enough for the lenders to feel that they will not make a complete loss in lending you the money. This will also provide you with good mortgage repayment offers and a smaller risk on losing out.

Anna Stenning is knowledgeable on the best way to compare mortgage rates and how to go about applying for mortgages without compromising your finances.

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