Willow Mortgages have launched a new mortgage service for clients with poor credit ratings. This independent service has the facility to search the entire mortgage market of over 400 mortgage lenders and is backed by a free search facility.
More information can be found at: https://www.selfcertremortgages.co.uk
Their specialist brokers have successfully found mortgages for applicants without any credit history, low credit scores, those with a record of late payments. Applicants with county court judgments or those who have homes repossessed or been made bankrupt may be able to secure a mortgage through their tailored solutions.
Willow Mortgages go through a simple five-step process with all applications. Firstly, they need the applicant’s credit history, which can be obtained for as little as £2. Within this they will identify unknowing actions that further lowered the credit rating.
They also clearly run through all the fees that are involved with obtaining a bad credit mortgage before making an application. Using their specialist expertise they can analyse each personal situation and maximise the attraction of the application to prospective lenders.
Those with poor credit ratings may not realise that lenders use three different credit reference agencies: Experian, Equifax, and Call Credit. Different lenders and any company report data to one or more of those lenders but not always all three.
For that reason, an entry on Experian credit files could be different from what is held on the Call Credit database. Information is shared between the three reporting agencies, but it takes time for records to be updated – and sometimes mistakes are made which lead to poor credit ratings. Simply obtaining the data from all credit agencies can enhance the chances of a better mortgage deal.
Another way to enhance the chances of a successful mortgage application is to increase the size of the deposit. If the borrower can afford a substantial deposit, this makes offering a mortgage more attractive to lenders. A slower way to become more attractive to lenders is to repair the credit score.
Another useful technique is for the applicant to obtain a credit-building credit card. These are specifically designed for those with bad credit ratings and if the balance is paid off in full every month it provides a clear indication of responsible financial management.
One unavoidable consequence of having a bad credit history is that any mortgage offered will be at a higher interest rate. However, if applicants can offer a large deposit, this will offset the risk to lenders and can result in a lower interest rate.
Full details can be found on the URL above.
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