The term 'bad credit history' can cover a whole range of issues relating to credit. It is very common for example for people to be late or miss a payment on their credit cards due to a genuine oversight or a direct debilt not being set up in time. This is unlikely to overly affect your mortgage application. On the other hand defaults on loans/credit cards, CCJ's and and IVA's almost certainly will.
Lets explain some of the terms in brief; A default is a mark against your credit record showing that you have missed (usually) three or more payments in a row on a loan or credit card. This does not in itself prevent you from obtaining a mortgage but may mean going to a more specialist niche lender as many high street banks and building societies will refuse such cases.
An IVA (individual voluntary arrangement) is when an individual cannot afford to pay their creditors and so enters into an agreement with them to pay a lesser, more affordable amount over a set period. This agreement is often arranged via a debt management company if a number of creditors are involved.
A County court judgement or CCJ occurs when a creditor or other entity obtains a ruling in court against you regarding an outstanding bill or debt which you are perceived to have not paid. The court will normally order you to pay a set amount per month. Until the debt is paid the CCJ is deemed to be "unsatisfied". Some lenders will turn you down if you have or have had CCJ's but others will allow it depending on how many there are in your history, whether they have been satisfied and how much they were/are for.
Another credit issue arises when people miss payments on a mortgage. This is called mortgage arrears. As one in four marriages end in divorce, that is potentially a lot of people in arrears. For example, on divorce many people are advised by their solicitors to stop making mortgage payments on their property until the affairs are sorted out. This can prove to be an obstacle with high street lenders but with our specialist mortgage lenders it maybe overcome.
You may have also been declared bankrupt at some point. Again, this may have been out of your hands but if you are 'discharged' then a mortgage maybe available to you.
With any case involving adverse credit history on a mortgage application each customer is treated on an individual basis and you should ask for a personalised illustration.
The overall cost for comparison is 9.1% APR.
The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Your home may be repossessed if you do not keep up repayments on your mortgage
Coleman Clough Mortgages is an appointed representative of Coleman Clough Investment Management which is authorised and regulated by the Financial Service Authority.Typically we charge £395 for advising on and arranging your mortgage. For poor credit circumstances the overall cost for comparison is 9.1% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Coleman Clough Mortgages, The New Barn, Home Farm, The Avenue, Esholt, West Yorkshire, BD17 7RH
A brief history of Yorkshire
Yorkshire is an historic county of England, centred on the county town of York, and was originally composed of three sections called Thrydings, now referred to as Ridings. The region was first colonised during the first millennium by Romans, Angles and Vikings. The name Yorkshire first appeared in writing in the Anglo-Saxon Chronicle in 1065.Following the Norman Invasion, Yorkshire was subject to the punitive harrying of the North, which caused great hardship. The area proved to be notable for uprisings and rebellions through to the Tudor period. During the industrial revolution, the West Riding became the second most important manufacturing area in the United Kingdom, while the predominant industry of the East and North Ridings remained fishing and agriculture. In modern times, the Yorkshire economy has suffered from a decline in manufacturing output which has affected the traditional coal, steel, wool and shipping industries.