Prospective
homeowners with
adverse credit problems wrongly assume they will be limited to
poor credit mortgage deals, a
mortgage expert has claimed.
James Cotton,
mortgage specialist at
financial services provider
London and Country
Mortgages, has made the comments while acknowledging that several high-profile
mortgage lenders refuse
applications from people with a history of
county court judgements or defaulting on
personal loans .
"All too often, people assume that because they've had some
credit problems in the past, they will have to pay a much higher
interest rate and, in some cases, high
broker fees," he said.
However, Mr Cotton argues that many applicants with
adverse credit problems could still be eligible for standard
mortgage deals .
Highlighting the point, he claims that 71 per cent of consumers who visit his
company with
adverse credit problems find they are still able to arrange a mainstream mortgage.
Would-be
property buyers who decide to ignore poor credit mortgage deals may wish to consider a range of other non-standard
financing options.
Nowadays, mortgage
lenders offer a host of tailored
home loans, including
interest-only mortgages, extended-term mortgages and stepped mortgages.
