In the past, poor
credit made getting a
mortgage very difficult. However, a number of
lenders now specialise in providing
mortgages for
adverse credit history. When it comes to buying a home with a
poor credit rating, the
Norwich and Peterborough Building Society offer a specific range of mortgages .
A number of homebuyers have poor credit due to having missed
payments, or faced county court judgements . The Norwich and Peterborough mortgages include a two-year
fixed rate mortgage and a
tracker mortgage . A ‘light adverse’
credit rating should be able to take out this
type of mortgage .
Light
adverse refers to a buyer whose credit rating is damaged but not too badly. For instance, a single
mortgage arrear in the last year but none in the last six months, or a maximum of 2000 pounds worth of county court judgements, could lead to a light adverse credit rating .
The product manager for Norwich and Peterborough, Richard Barker, said: "Credit impaired
mortgages are a growing market, while we are careful about lending in what is a higher risk area of mortgage
business, this type of lending has become commonplace and using our affordability index means we have a clearer picture of an applicant's earnings and outgoings and an accurate view of whether they can really afford the mortgage ."
