Bad Credit Mortgages “Non Conforming Loans”

Many people these days have a bad credit rating, often due to circumstances beyond their own control. You may need a bad credit mortgage (also known as non conforming mortgages or sub prime mortgages) if you have been declared bankrupt in the past, have fallen into arrears on a mortgage or suffered other debt problems. Or you may simply have court judgment against your name, due to non-payment of a utility bill, for example, which may necessitate a non conforming mortgage when you come to buy a property.

Mortgage Lenders and Bad Credit

Fortunately, it is easy to find a mortgage lender for bad credit these days. Whereas in the past just a handful of specialist bad credit mortgage lenders catered for this section of the market, now every broker has a division specialising in non conforming mortgages.

The downside is that you may have to pay a slightly higher interest rate than you would otherwise be charged for a regular mortgage. But the good news is that a full range of variable, fixed, discounts, and flexible non conforming mortgages are available to you.

Get a Mortgage with Bad Credit

An estimated one in four Australian’s would be turned down by mainstream mortgage lenders. This is because not everyone fits the standard criteria lenders apply. But don't worry if you have been refused credit by a mortgage lender - help is at hand. 2nd Chance Mortgages cater for individual needs and each application is assessed individually based on the customer’s circumstances. 2nd Chance Mortgages gives borrowers the alternatives that may not be available through the traditional lending sources.

Once you have been with a non conforming lender, as long as you keep up your mortgage payments you will have established a new credit rating and can return to the mainstream market with a new deal at a lower rate, a 2nd Chance Mortgages representative will explain to you what you will need to do to make this happen.

Check your Credit Rating

If your mortgage application has been rejected, or you simply suspect that you may have a bad credit rating, you can access your credit file from Baycorp Advantage

Pros and Cons

• Bad credit mortgages allow thousands of people access to home loans they might otherwise not get.
• Increased competition means the interest rates charged have come down considerably in recent years.
• A full range of mortgage products are available through 2nd Chance Mortgages.
• They are still more expensive than mainstream mortgages however in the long run they can save you credit rating and your future if the product is right for you.