Severe Adverse Credit

The mortgage market has experienced a lot of turmoil over the past year, and many homeowners are starting to feel the effects – particulary borrowers suffering from adverse credit.

Previously the mortgage market was very competitive, with lenders offering a wide range of mortgage and remortgage deals for borrowers with adverse credit. In return for providing these ‘high-risk’ borrowers with the funding they desired, the adverse credit mortgages had noticeably higher rates of interest than a standard, high-street mortgage.

After the recent credit crisis, many lenders are no longer willing to take the risk when lending and these deals have now all but disappeared. Many borrowers with severe adverse credit, who previously had no problem finding a mortgage (albeit one with a high rate of interest), are struggling to meet their mortgage repayments and are unable to remortgage to find a new low cost deal.

What can be done?

Mortgages catering for adverse credit borrowers are still available, although there are less available and the lenders’ have tightened the lending criteria, and so remortgaging to a more cost-effective mortgage is still possible – it’s simply a case of knowing where to look.

The More Group, as a whole of market mortgage broker, have access to the majority of mortgage deals currently available – from both prime and sub-prime lenders. If there is a deal available, we can help arrange it for you. To get the process started, complete our online remortgage enquiry form.