It is a complete myth that those with bad credit cannot obtain a mortgage or remortgage. There are many lenders out there who will talk through your options with you and try to reach a suitable conclusion, after all - any money is good money, and even if you've had trouble in the past credit-wise your money is as good as anyone else's. In fact, most remortgage companies will take special time to talk to you. One disadvantage is perhaps a higher interest rate, but this is something only you can do something about by shopping around. Yes, you can shop around - bad credit does not mean the end of the world and especially in this day and age when the average consumer is sitting contentedly in a mire of approximately $15,000 - and that isn't even included in the mortgage/remortgage debt ratio.
People with bad credit often have a reason for it, there aren't that many out there who just go on shopping spree after shopping spree to run up the credit card to the max; it can be loss of your job, a change in family circumstances or just that you couldn't manage to pay for a while and it resulted in a default on your credit record. These problems are not insurmountable, and you CAN start to gain back the trust of these companies if you can get on the ladder. Once they allow you back on, you can work to restore your credit and become less of a credit risk.
So, why is it so hard to get remortgages while suffering from a less than perfect credit record? Well, most lenders now go by databases which are held on every credit using consumer, and if you've defaulted, they can see this on the register (that most credit companies add our data to). They see the bad credit sign and make sure we know that they know, we are less than perfect. They immediately see us as a 'risk', and utilize this as a way to get more money out of us. Unfortunately there isn't too much we can do about this, but we can shop around!
Not every lender will use the same high remortgage interest rate that the really expensive ones do, in fact some lenders to people with bad credit give pretty good rates and other options just in case the worst happens once more. You can take insurance against not being able to pay for a while, or simply pay a higher premium with the lender for 'protection'. The key to getting a remortgage with bad credit, is to shop around. You WILL eventually find someone willing to take you on, and you can compare these businesses with others that say the same to find the best rates. Once you finish what will definitely be an exhausting search, you will be back on the remortgage ladder and start to repair that credit.
For more information about Bad Credit Remortgae, please visit loanroad.co.uk cheap personal loans website.
Ben Jaffe is a consultant and advisor on Bad Credit Unsecured Loan and Cash Advance Payday Loans
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