REMORTGAGE INFORMATION
CREDIT RATING MYTHS (Article City 2007)
Myth 1: Previous occupants at your home affect your credit rating
A classic myth and most people believe it - but it's completely untrue. The previous occupant of your house or flat could have been a millionaire or a bankrupt, but that makes no difference to lenders at all. Lenders are only interested in your ability to cope with a loan, so they will look at your individual circumstances. It is a good idea to register to vote, wherever you live. That's one of the factors lenders take into account if you apply for a remortgage and adverse credit.
Myth 2: Family and friends living at your address could harm your credit rating
Until a few years ago, lenders checked the credit reports of others living at your address. They could then take their position into account when deciding whether to offer you credit - That no longer happens. Instead, your credit report contains a section listing your financial associates - people with whom you share a joint account, such as a joint mortgage. Lenders look at these instead.
Myth 3: Credit reference agencies decide your credit rating
No, they don't - Credit reference agencies collate the information held in credit reports and hold it securely. Lenders use this information, along with your application form, to calculate a credit score - a number that represents the risk that you will not repay what you owe. Generally, the higher your score, the lower the risk you represent and the easier you'll find it to get a good deal. However, a remortgage and adverse credit can go hand in hand !
Myth 4: Your credit rating is poor because you're on a blacklist
Another pub myth. There's no such thing as a credit blacklist. Red-lining - ruling out whole streets or estates - simply doesn't take place and your credit score does not take account of factors such as gender, religion, race or ethnic origin. What does count to lenders is continuity and how well you have managed your affairs over time.
Myth 5: You have only one credit rating
You can have many different credit ratings, depending on who you apply to, what you apply for and your circumstances at the time you apply. Every lender uses a slightly different equation to calculate a credit score - some also use different versions for different products. Your credit rating also changes when your circumstances change. For example, paying off a debt could improve your score, while missing a series of repayments could damage it. Therefore, if you are looking into a remortgage and adverse credit it is worth choosing someone like Switch Finance who will take this into consideration.
Myth 6: Past debts don't count
Oh yes they do ! If you have missed repayments in the past, it stays on your credit report for 36 months. With a court judgement, the evidence is there for six years. A discharged bankruptcy stays on record for at least six years but a bankruptcy restrictions order is there for as long as 15 years. Lenders see these and mark you down, because they fear you may not honour your obligations.
What to do now
Don't panic. You still may be able to get a loan or remortgage and adverse credit or if you are looking for a remortgage and self employed by using us. Also check your current credit report to ensure it is accurate and up to date. For example, you may have missed a few repayments because of illness or an accident. You can ask to add this on your file where lenders will see this note and can take it into account.
> USING A SUB PRIME LENDER NEED NOT BE A BAD THING (Article City 2007)
I have worked in the lending market for many years now and the debate over non-conforming lenders never seems to amaze me. Life is a very simple thing. We have wants and needs, and we will all do our best to get them. Sometimes they are easily available, other times we may not be able to achieve our goals through the obvious channels so we find alternatives and latterly we cannot have them at all. But let me focus on the desires we have but we cannot reach them though traditional channels so we hunt around. Isn’t this the same for clothes, cars, electrical goods and a host of other things in our life? Of course, hence the rise in the number of outlets like TK Maxx and other factory outlets stores. It’s just another way of satisfying your needs using an alternative channel. So you cannot get a loan or mortgage from your usual bank due to circumstances beyond your control, but you can from another lender? Remortgage and adverse credit. As long as they are regulated, honest and upfront why shouldn’t you?. Raising cash is a fact of life. We all need it. For new purchases, improvements in our living circumstances, special occasions and many other reasons. Due to consumerism in today’s society, millions of people are forced to overuse their credit cards causing major debts, which result in bad credit rating. These issues escalate every month as interest and fees are increasing and ability to pay debts is decreasing.
Non-conforming lenders (sometimes called sub-prime lenders) help consumers get their financial life back in order. It’s just another channel to reach the same goal. Non-conforming lenders offer a lending service to help clients with a different financial history and problem remortgage. They come up with various ways of resolving their financial requirements using alternative loan products. These loan products work in the same way as any loan or mortgage would from your high street bank except they usually carry a slightly higher interest rate to cover the increased risk of the borrower. Usually the borrower has been turned down by a high street bank due to a poor credit history – payment arrears, remortgage ccjs or low income. The non-conforming lender will take this into consideration but works on a table of risk to assess how big the risk is and what loan products are then available to the consumer. If the loan is sourced through a broker a brokers fee is usually payable on top of the loan but this should be made 100% visible before any documentation is signed. So you get what you want. Your mortgage for your new home, your loan to consolidate your debts, your new conservatory, your new car or to go on that holiday of a lifetime. Using a sub-prime lender is just another means of reaching your goals given your circumstances.Now a word about sub-prime lenders. You will find them everywhere in the tabloids, internet blogs and banner advertising. Some will deal direct over the telephone, others will try and send Advisors to your home to go through the options and paperwork with you. It’s your choice so don’t be forced. Make sure you are aware of any charges, redemption penalties and insurances that are part of your package. I know sub-prime lenders have had some bad press in the last few years, but in reality they are just serving a market place high street banks are slow to latch onto. If you are looking to raise money through a remortgage and adverse credit or a secured loan and have difficulties getting it from a high street bank, contact us at the Big Loan Company and we will do our best to help you. We have been in the business for many years and have wide range of products to suit all needs, from the thrifty borrower to those with a less than perfect credit rating.
REMORTGAGE AND ADVERSE CREDIT ARTICLES
Credit rating myths
It is a fact that nearly 25% of the population has been declined credit at some point. In addition to that some 40% of those have no idea why? Remortgage and adverse credit can go together, but you have to seperate the facts from the myths. Can you get a remortgage and adverse credit? How is your credit score judged. LEARN MORE
Using a sub prime lender can be worth it !
So you cannot get a loan or mortgage from your usual bank due to circumstances beyond your control, but you can from another lender? Remortgage and adverse credit. As long as they are regulated, honest and upfront why shouldn’t you? Raising cash is a fact of life. We all need it. Remortgage and adverse credit for new purchases, improvements in our living circumstances, special occasions and many other reasons. Due to consumerism in today’s society, millions of people are forced to overuse their credit cards causing major debts, which result in bad credit rating. These issues escalate every month as interest and fees are increasing and ability to pay debts is decreasing. Non-conforming lenders (sometimes called sub-prime lenders) help consumers get their financial life back in order. It’s just another channel to reach the same goal. A remortgage and adverse credit is possible. LEARN MORE
Self-employed "in the dark" about self cert remortgage deals
'Half of the self-employed and those with second incomes do not know about self-cert mortgages and remortgage deals, according to a new survey. A poll by Mortgage Express revealed that 71 per cent of self-employed and secondary income workers are unaware of how self-cert mortgages and remortgage deal work and 49 per cent did not know of their existence.
Furthermore 56 per cent did not know they might not be eligible for a standard mortgage. Andy Wiggans, director of mortgage products at Mortgage Express, said: "Our findings show that the potential self-cert market is strong and has grown by an estimated 15 per cent over the past four years. "Yet lack of consumer awareness regarding this product is still preventing many eligible consumers from getting on or climbing up the property ladder."
He added that while self-cert mortgages were not ideal for all, they could be a solution for those are dependant on secondary or variable incomes. "With the expertise that intermediaries have, they are ideally placed to demystify self-cert, ensuring that clients are provided with thebest guidance possible," he said.
Source: AOL/Mortgage Express.BACK TO HOME PAGE