When it comes to 100% mortgages bad credit consumers can still get a good deal
With consumer debt at an all time high in the UK, many households and individuals have found themselves falling behind with repayments or missing payments on their debts, and as a result of this many have seen their credit rating plummet, which can make obtaining finance in the future very difficult. However, in many cases bad credit consumers are still able to get secured credit, as this is a lower risk for of credit for lenders because the loan is secured against an asset, which is the home. A mortgage is, of course, a form of secured credit, and when it comes to 100% mortgages bad credit consumers are still able to get competitive deals.
One thing to bear in mind is that when it comes to 100% mortgages bad credit consumers may have far less choice than consumers with bad credit, as many mortgage lenders will only lend a percentage of the property value to sub prime consumers, which means those with bad credit. However, this does not means that when it comes to 100% mortgage bad credit consumers have to put up with a raw deal – there are still some very competitive rates and mortgage deals available on the market.
You can get a 100% mortgage quote quickly and easily via the Internet, and going online can also make it far easier to find a 100% mortgage lender that offers facilities for those with a tarnished credit history or low credit rating. When it comes to 100% mortgages UK borrowers can select from a wide range of deals such as 100% commercial mortgages, 100% buy to let mortgages, 100% interest only mortgages, 100% repayment mortgages, and more. The choice may be more limited for those with bad credit, but it is well worth shopping around in order to find a mortgage that offers value for money.
If you have fallen behind with repayments and this is why you have ended up with bad credit, it is important to remember that a mortgage is a secured loan, which means that if you do not keep up on repayments you could risk losing your property. You should therefore make sure that you can afford the repayments on the amount that you are borrowing before you make a commitment, and if necessary opt for a fixed rate mortgage in order to reduce the risk of rising repayments due to higher interest rates in the future.