What is adverse credit history?
In simple terms this just means someone with bad credit, someone who is unable to keep up with payments on credit agreements. This is referred by lenders as adverse credit. Those with adverse credit will have negative payment information on their credit report.
There are many reasons to why you have been noted as an individual with adverse credit and here are some of the following reasons:
- Making late payments
- Missing payments/Defaulting on payments
- Filing bankruptcy
- County court judgements
- Debt management plans
These could have an impact on your credit history for up to 6 years, so it is a good idea to try and keep up with credit payments. Low credit scoring can be considered a high risk by the lender too.
However it is not the end of the world if you have adverse credit. People tend to make the assumption that having bad credit history means you’re unable to get a mortgage. This is actually incorrect and there are specialist lenders out there willing to lend to you.
The catch is that the interest rate may be at a higher rate in comparison to someone applying with a clean credit score. Also some lenders may restrict you when applying for higher LTV mortgages.
Some lenders also allow you to remortgage to consolidate the debts outstanding and merge them into your mortgage.
Contact the team today at rose bank mortgage brokers to talk through your circumstances and see if we can assist you on purchasing a home.