Credit Problems needn't be a problem when it comes to your mortgage! Mortgages for people with credit problems from Shire Direct...
Your credit problems don't necessarily have to be a problem when it comes to your mortgage! Here at Shire Direct we recognise that many of us will hit a 'blip' of some sort at one point or another in our lifetimes, and many a time through no real fault of our own, all of which can have an unexpected and sometimes devastating effect on our finances!
That's why we've come up with a range of quality mortgage products from lenders who will sympathetically consider those borrowers who have suffered credit problems of one form or another!
So, let's take a closer look at Credit Problems, and why they don't always have to be a problem when it comes to mortgage funding and how we here at Shire Direct may well be able to help with mortgage or remortgage funding if you have experienced credit problems yourself.
Credit Problems - table of contents:
What are credit problems, and what can cause them?
Credit Problems simply refer to the difficulty a person may have in obtaining credit, such as a Mortgage, Homeowner Loan or Credit Card for example.
Some common issues that can cause credit problems or difficulties include:
There are other issues too which we'll explore in a moment or two, when we will take a more detailed look at credit problems.
On the high street, many borrowers will find that the door to mortgage funding is often firmly shut from the High Street lenders should the borrower have experienced problems of this nature.
Happily, this is not the case at Shire Direct, where we've prepared a range of mortgage solutions to help with credit problems even in the trickiest of circumstances!
Mortgages and Credit Problems
If you're experiencing difficulties in arranging credit or mortgage facilities, it's likely to be as a result of one or more of the following aspects:
- Poor Credit Score / Affordability
Many mortgage lenders operate a credit scoring scheme calculated by assessing information contained on your application form, which is usually combined with details contained on your credit file, held by one of the major credit referencing agencies, such as Experian or Equifax.
The application form you have completed will be scrutinised by the lender's automated credit scoring system, and is likely to take into consideration, assess and score the following information.
- Age
- Residential stability
- Residential status
- Stability of employment
- Type of employment
- Income
- Expenditure
- Payment profile
- Credit record
The results are added up to produce a 'Credit Score, and this predicts if you are likely to be an acceptable risk. The higher your score, the better your chances of being accepted for finance. Thus for example, you will score more points if you:
- are 32 rather than 62
- have lived at only one address in the last 3-years, rather than moving 2 or 3 times a year
- are a homeowner, rather than a tenant
- have been in your present employment for a year or more, as opposed to having more than one employer in the last 12-months
- are employed, as opposed to being self-employed
- have sufficient net disposable income to meet the lender's criteria
- can demonstrate that you can afford to pay your debt commitments
- Adverse Credit
All lenders will need to take into account the conduct of your financial affairs, such as:
- If county court judgements (CCJ's) have been registered against you
- If credit defaults have been registered against you
- If bankruptcy proceedings have ever been registered against you
- If you have entered into arrangements with your creditors (IVA)
- If you have had any mortgage or rent arrears in the last 12-months
Even if you do have adverse credit registered against you, don't worry! Shire Direct have a range of lenders whose mortgage and homeowner loan schemes are geared to consider your application - whatever your needs and requirements!
- Available Security
When the finance you are looking for is secured, either by a Mortgage or Homeowner Secured Loan, the lender will also take into account the available equity (security) you can offer as well as any adverse credit you may have registered against you.
For example, if you have a high credit score and no adverse credit registered against you, then you are likely to be considered a good risk, and will generally find that you would qualify for high percentage borrowing of up to 95% or 100% loan to value. However, if your credit score is low, and you have adverse credit registered against you, then it's likely that your borrowing will be restricted to 75% to 90% loan to value.
Our extensive portfolio of lenders accommodate schemes that cover the entire spectrum of lending, so whether you have a pristine track record, or have experienced difficulties with poor credit, we are sure to have the most appropriate product for you!
Credit problems and your Credit File...
Let's take a closer look at how your credit file can inadvertently create create credit problems, and how to fix credit problems that arise in this way.
What problems arise with information held on my credit file?
Problems can arise for a number of reasons including:
- A previous occupant at your address had a bad credit record
- Someone living at the same address, in a separate flat or as a lodger in your household, has a bad credit record
- A member of your family has a bad credit record
- Someone with a similar name has a bad credit record
- Someone with a similar address has a bad credit record
- Someone living at a previous address of yours has a bad credit record
- You have repaid the debt, but that information has not been forwarded by the lender
- Incorrect information has ben provided by the lender to the credit reference agency
- You are not on the Electoral Register (Voter's Roll)
What can I do if I have been refused credit?
Firstly, you should ask the lender why you have been refused credit, and if a credit reference agency was used, and if so their name. If the lender indicates there was a problem with your credit search, you can write to the agency to ascertain the information held against you. The two main credit reference agencies are:
- Experian Limited, PO Box 8000, Nottingham NG1 5GX.
- Equifax Limited, PO Box 1140, Bradford BD1 5US.
Fix Credit Problems: The right to amend your credit file.
If you discover that information held on your credit file is correct, you shouldn't expect the credit referencing agencies to remove them because they are embarrassing or create difficulties when you apply for credit! However, you can, and indeed should ask for your file to be amended if:
- it contains information about other people with who you have no financial connection
- it contains information which is incorrect
If you need further help, you can write to:
- The Information Commissioner,
Wycliffe House,
Water Lane,
Wilmslow,
Cheshire SK9 5AF.
Credit Problems assistance and Credit Problem Mortgages from Shire Direct...
'Do all lenders use Credit Scoring when assessing circumstances' you may well ask, and we're happy to report that the answer is no, not at all!
As we said earlier, here at Shire Direct we understand personal circumstances, and have developed a range of schemes to accommodate our customers' requirements - even in the trickiest of circumstances!
Our assessments are not judgmental. All too often people who don't meet the lender's credit score, but do have the willingness and the ability to repay, have the door to borrowing closed on them! Not so at Shire Direct!
We have the approach, the skills and the desire to arrange mortgage and loan funding for our customers. Our specialist underwriters and advisors have a wealth of experience in carefully assessing your circumstances, and providing appropriate advice.
You'll find us to be approachable, helpful and friendly. Naturally, we'd love to help in any way we can. So if you have experienced problems elsewhere, please don't hesitate to contact us. We look for reasons to fund an application - not turn it down!
So get in touch with us today to discuss your credit problems and talk over your mortgage options. You can call us today on Freephone 08000 282 281 (lines open 7-days a week from 8am until 10pm), or alternatively you may wish to enquire online instead, in either instance we'd love to hear from you and will be delighted to help wherever possible.
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
