The Best Bad Credit Mortgages

Posted by on November 28, 2017 in Mortgages | Comments Off on The Best Bad Credit Mortgages

The Best Bad Credit Mortgages

Bad credit is no longer stopping people from taking out mortgages. Strictly speaking, there is no such thing as bad credit. If one lender does not offer a mortgage loan to a person, there is always another lender right around the corner.

Though a bad credit mortgage does not stop lenders to give out loans but they do so with a higher interest rate and fees. Usually after a time, the bad credit slowly repairs and the person can apply for a lower rate mortgage.

Following are some of the companies that offer mortgage loans even on bad credit history:

Yorkshire Building Society

Founded in 1864, Yorkshire Building Society is a bank based in Bradford. It is known as the second largest bank in UK. The company is best known for its award winning mortgages.

The company offers three types of mortgages:

  • Fixed Rate – 1.25%
  • Tracker – Interest is set according to the base rate of Bank of England
  • Offset – Using savings to pay mortgage and lowering interest rate

In order to apply for a mortgage, a person must be:

  • 18 years old
  • A resident of UK for 2 years
  • Minimum loan time period 5 years
  • Maximum loan time period 35 years

Nationwide

Founded in 1846, Nationwide is the largest building society that houses the bank Nationwide. A financial institution based in London, Nationwide won the best savings and mortgage provider in January 2016.

The company offers two types of mortgages:

  • Fixed Rate – 1.49%
  • Tracker – 1.34%

Nationwide has the following three steps on entering mortgage process:

  1. Processing the application: Once the mortgage form and other documents are submitted by a person, nationwide takes 48 hours to process it
  2. Property Valuation: The property of the person is then valued, which usually takes 2 weeks
  3. Receiving Offer: The bank gives the person a mortgage offer, which the person can either reject or accept

Platform

Founded in 1872, Platform is the trading name of UK’s biggest lending trader: The Co-operative Bank. The company has a motto that they lend mortgage money to nine out of ten fist time buyers.

The company offers two types of mortgages:

  • Fixed Rate – 1.24%
  • Tracker – 2.49%

Following are the steps to apply for a mortgage loan at Platform:

  • The company provides an advisor to asses a person’s situation and gives him/her mortgage payment options
  • Personal circumstances, income and expenditure are taken in to account
  • Property is evaluated
  • An amount is fixed according to the condition of the property
  • Final application with documents is processed
  • The company advisor gives you details on how to maintain your repayment schedule

Even though a bad credit rate does not matter in order to apply for a mortgage loan, a good credit history will go a far way in getting you an even better deal. You can visit Quiddicompare and compare the different interest rates offered by banks in UK.