With more than half of the UK population having more than whats classed as manageable debt, its perhaps not surprising that bad credit mortgages are becoming more widespread. Getting onto the property market can be hard enough, but with a low credit rating it can be almost impossible, so the lenders and companies that offer bad credit mortgages are helping millions of new homebuyers everywhere.
However, as much as they help people out, these types of mortgages can also cause as many problems as solve them, so you need to be sure you understand whats involved in a bad credit mortgage.
Interest Rates
One of the biggest differences when it comes to getting a mortgage for someone with bad credit is the interest rate involved. Whereas the average rate of interest on a mortgage in the UK might be around 5.5% to 6%, its much higher for a bad credit mortgage. In fact, its not unusual for the interest on this type of mortgage to be as much as 7.5%. While that may not look too high, it soon adds up when adding the extra interest onto your monthly payments.
Additionally, should you fall behind on your mortgage, you can find that the APR is a lot higher than a...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
