Adverse credit remortgage

Monday, November 19, 2007

The US housing crisis has had a marked effect on UK markets, so much so that the majority of sub prime lenders have revised their rates and criteria on a daily basis to reflect investors' lack of confidence in the market. This has resulted in no lenders wanting to leave themselves in a market niche that no one else wants to partake in.

Although the frenzy of rate changes seen a month ago is dying down, the market is still experiencing problems. Rates are being revised and products are either changing or being completely withdrawn.

There are still lenders who offer heavy adverse, bad credit remortgages but these schemes will usually restrict the amount of recent arrears incurred and limit the LTV (loan to value).

Another issue is where a customer is already with a sub prime lender and the new lender is likely to insist on the last three payments having been made in full and on time.

If you need an adverse credit remortgage and have missed payments on your current mortgage, the key is to act early. If you speak to a broker early on, you will have a better chance of being able to source a new lender.

If you have any questions about a bad credit remortgage, feel free to call Solution Mortgages on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk