Frequently Asked Questions


1. What are adverse credit mortgages?

If a mortgage is provided to a borrower with impaired credits or poor credit score, then it is known as adverse credit mortgage or subprime mortgage.


2. Who are adverse credit mortgages suitable for?

Adverse credit mortgages are suitable for those who have outstanding debts and subsequently poor credits or low credit score.


3.Do only specialist lenders offer adverse credit?

Yes, adverse credit mortgages are not offered by all lenders. These are offered by specialist lenders who will assess each case individually and independently. They will take the time to assess when and why the credit problem occurred, who the customer defaulted against and what has happened since.


4. Are there any downsides to adverse credit mortgages?

Frankly speaking there are no down sides to adverse credit mortgages. It is only that the interest rates are high. It is but obvious to have higher interest rate as there is a higher risk involved in lending mortgage to an adverse credit holder. However, many lenders are offering fixed rates that are only marginally higher than high-street prices.


5. Will it help me improve my credit rating?

By making timely payments on your mortgages you will gradually work towards obtaining a good credit score too! You will get better mortgage products in future too.