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Bad Credit Mortgage
Definition
A mortgage product designed for borrowers with a poor credit history, often with higher interest rates and stricter terms.
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Related FAQs
Yes, some specialist lenders offer HMO mortgages to borrowers with adverse credit, though rates may be higher.
Was this helpful?Lenders consider missed payments, defaults, and CCJs. The severity and recency affect rates and terms.
Was this helpful?Most lenders require a minimum 30% deposit for borrowers with adverse credit, though some may accept 25%.
Was this helpful?Bad credit HMO mortgage rates typically range from 6.5% to 10.5%, significantly higher than standard HMO mortgages due to increased lender risk.
Was this helpful?Most lenders require 12-24 months of clean credit history after resolving bad credit issues, though some may accept applications sooner with larger deposits.
Was this helpful?Strategies include paying all bills on time, reducing credit card balances, checking your credit report for errors, and avoiding new credit applications.
Was this helpful?You'll need proof of income, bank statements, credit report, explanation letter for bad credit, evidence of resolution, and potentially guarantor details.
Was this helpful?Bad credit HMO mortgage applications typically take 8-12 weeks due to additional credit checks, manual underwriting, and potentially more thorough lender assessments.
Was this helpful?Criteria include strong current income, evidence of credit improvement, adequate deposit, property suitability, and often landlord experience.
Was this helpful?Yes, some lenders accept guarantors for bad credit HMO mortgages, which can help reduce deposit requirements and potentially secure better rates.
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