Right To Buy Mortgage With Bad Credit

Right To Buy is the option for a council or housing association tenant to purchase their property at a discount after a minimum set period of residence. This is an opportunity many tenants take advantage of, although some with a poor credit rating may feel unsure about taking the step to purchase their rented property and make that move on to the property ladder.

However as you will receive a discount from the council you will be borrowing at a lower loan to value than many borrowers. This helps lenders consider your application favourably and so this may be a good opportunity for you to buy your home. Here at First Choice Finance we can help you look at your Right To Buy options and help you through the right to buy process even if you have a bad credit rating.

All our advisers are CeMAP (Certificate in Mortgage Advice and Practice) qualified, this will ensure our best advice is given in relation to your queries on mortgage related matters. We adhere to the practices of the financial regulations, which provide protection for you as a mortgage borrower, it sets out a minimum standard that we as a mortgage advisers have to meet.

We look at each application individually and obtain the best rate for you the client, rates vary widely so we look at the best lenders available to you from our panel.

Remortgage With Bad Credit

Does bad credit mean the end of the road for potential remortgage consumers?
Not at all. Thanks to bad credit mortgage lenders looking for your business, it is possible to acquire a home buyer loan even with poor credit. In fact, bad credit mortgages can greatly help consumers with defaulted or delinquent financial histories to get back on the right track.

Though the interest rates on bad credit mortgages may be steeper than usual – owing to the higher risk status of the clients they are addressing - the numerical gaps are not always large. Also it may be perfectly possible to switch your mortgage to a better product after just three years, provided that all bills are met in full and in a timely fashion. This can work proactively to make a difference to your financial status in the future.

Choosing The Right Bad Credit Mortgage Lender

Now, just because you have bad credit does NOT mean you are at the mercy of bad credit mortgage high rate lenders. Not at all. In fact, the market for adverse mortgages is quite large. Selecting the right mortgage lender is crucial to making bad credit mortgages work for you so do take the time to find the right one. When choosing the right lender for bad credit mortgages, pay attention to whether the company:

Is reputable: The mortgage lenders who offer bad credit mortgages are known in the industry as near prime or sub-prime lenders and just like in any type of mortgage, you have to shop around to find the best lender for you.

Is truly committed to the improvement of your current financial situation: Competent providers of bad credit mortgages are readily available for consultations about matters beyond the actual mortgage itself such as planning strategies for credit improvement.

offers a comprehensive array of services to help you find the best method for financial improvement: whether it’s through bad credit mortgages, mortgage refinancing, debt consolidation, or via home loan solutions.

Bad Credit Mortgages – Turning Bad Credit Into Good Credit

Of course, financial problems will not simply melt away even with the best bad credit mortgage package. They are simply a means to give you a ‘financial breather’. In the end, it is still up to you to really turn your credit around.

Following are some tips to do exactly that.

Aim for stability. Now that you have signed up for a bad credit mortgage, avoid any other extravagant purchase or other credit - such as getting a new car or applying for payday loans. Not only do these jeopardize your monthly payments to your bad credit mortgage, they also work towards painting a picture of financial instability on your part for future finance.

Use your new mortgage to improve your credit record. Credit history is built by using credit. In this instance, how you ‘treat’ your bad credit mortgage is a good indication of whether your financial situation is getting better or worse. For instance, are you paying your monthly mortgage payments on time? If so, do you still have some money left over to save? If, on the other hand, you cannot pay your bad credit mortgage on time and are always short on cash, you need to seriously consider taking steps to remedy the situation.

Keep an eye on credit reports. Keeping payments on your bad credit mortgage in check is nothing if your ‘good deeds’ are not recorded correctly in your credit report. As such, regularly ask for copies of your credit report and check any discrepancies. If there are any, do not rest until these are corrected. If they are not, you will continue to have bad credit and this will affect other big purchases in the future.

When the time comes... you may be able to refinance your bad credit mortgage. Getting a 10, 20 or even a 30-year bad credit mortgage term does not mean you are stuck with it for that specified time. Indeed, once you have increased your credit score, you can opt to refinance your bad credit mortgage to a more `normal` one . Always keep this in mind as your long-term goal. Now, understandably, most sub-prime lenders are not keen on you refinancing because they earn less. As such, please check your mortgage contract for any penalties that may be applied to you if you opt to refinance your mortgage early.

Struggling with bad credit is a problem that many consumers inevitably have to deal with, though no one aims to end up with it in the first place. Still, the emergence of bad credit mortgages simplifies the matter a great deal. Bad credit history can slowly be repaired. Thanks to specialized lenders and bad credit mortgages, the means for turning a bad credit rating into good rating can ultimately be achieved.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.