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If you are new to the property market or unsure whether you have what constitutes bad credit then we have put together a useful collection of information for you below. However you may know exactly what you have in mind and would like to proceed to our secure form processing no obligation enquiry. Then all you need do is click above or on the 'Apply' button.

Information for Mortgages for those with a bad credit history
If a borrower has a history of poor credit usage then this is described as Adverse or Bad Credit. Having a bad credit history could mean that you have experienced county court judgments, mortgage arrears or even bankruptcy in the past.

Or it could just be that you have in the past made a late payment (s) on a credit card or mortgage that at the time you didn't even realise was significant for gaining future credit. If this is the case you may well fall into the category of bad credit history.

Before a lender decides to offer you a mortgage or loan they do a credit check on you. This credit check will show any of the above situations but even if you are fiound to have a bad credit history you could still qualify for a mortgage whether it is through a high street lender or sub prime lender.

You may have a bad credit history if you have one of the following:County Court Judgements (CCJ), Bankruptcy, Mortgage arrears or any late payments on credit arrangements. Below we have explained what these mean.

Arrears: This describes the amount the borrower is behind in his mortgage repayments schedule. The amount is usually measured in either pounds or months.

Bankrupt: A Corporation, Firm or individual who, via a court proceeding, is relieved from paying all debts once assets have been surrendered to an appointed third party designated by the court.

County Court Judgements (CCJ): An adverse ruling by a County Court against a person who has not satisfied their debt payments with their creditors. Once the ruling has taken place it will be recorded against the persons credit history and will appear every time a credit search is done for the next seven years. If a person has a County Court Judgement against them it will have to be satisfied before they can get a mortgage. They will also find that the mortgages they can get will be at a higher interest rate.

Default: Failure of an individual to make payments on a mortgage at the correct time or to not comply with the mortgage companies requirements.

Is a bad debt mortgage different to a standard mortgage?A bad credit mortgage is no different to a standard mortgage, but is only intended for people with a bad credit history. It is sometimes referred to as a sub prime or non-status mortgage. It can come at a slightly higher rate than a standard mortgage however. As well as being call a bad debt mortgage it is also known as adverse credit mortgage, non status mortgage, sub prime mortgage, non standard mortgage, poor credit mortgage and a credit impaired mortgage.

Will my credit history improve after taking a bad credit mortgage?
Yes - Once you have obtained a bad credit mortgage you must keep to the lenders agreement and make your repayments on time. As long as you continue to do this for three years your credit history may no longer be considered as "bad". So you could then remortgage to a standard mortgage again through us and then have a far wider choice of mortgage products at better rates.

Do I need a deposit - I am buying for the first time?
No. 100% (and up to 125%) mortgages can be arranged for you. This may be made up of a loan and mortgage combined. This means that you do not require to pay a deposit of any kind. Furthermore, many lenders will allow you to add legal fees and stamp duty to your loan. You should always remember that by adding monies to your loan, you are increasing the loan you have to repay.

Can I borrow more than the value of the property?
Yes, in some circumstances you can borrow upto 125% of the value of the property. You must be aware of this since this would cause you a problem if you wished to sell the property soon after the mortgage started, as the outstanding loan would be more than the property value. However, most 100% mortgages are not short term, therefore giving you the borrower time to start to repay the loan, and if the property increases in value, this creates equity in the property.

What if I have existing debts?
As mentioned above some lenders will allow you to borrow up to 125% of the property value - this allows you to repay debts, pay stamp duty, legal fees and other costs. It also allows you arrange for any home improvements that may be necessary.

As a leading mortgage broker, First Mortgage Trust is independent of lenders and therefore are impartial, so we will be able to use our expertise to "advise and recommend" the correct mortgage for you. Before selecting a mortgage broker it is essential to check that they are independent, otherwise you may not receive unbiased advice. First Mortgage Trust offer a broad range of adverse credit mortgages.