Sunday, March 14th, 2010 at
7:26 pm
A County Court Judgement is an order by the courts for one party to pay an amount owing to another party. County Court Judgements, or CCJs, affect people’s credit files and will normally require the applicant to abandon the prospect of applying for traditions mortgage products and instead apply for bad credit mortgages.
When the order is given by the County Court, the creditor will be required to repay the debtor within a specified period of time. If this is not done, a County Court Judgement will be recorded on the creditor’s credit file. This entry can remain on the credit file for six years if it is not settled in the meantime. Having impairments to a credit file such as CCJs can make it extremely difficult to obtain standard mortgages from high street lenders.
Because County Court Judgements are so common, a large number of people are unable to apply for standard mortgages. This could be viewed as unfair as CCJs can be recorded on a person’s credit file for trivial amounts of money and sometimes without their knowing. The massive growth in the number of people who suffer from this form of adverse credit has lead to incredible growth in the market for bad credit mortgages in recent times.
In addition to mortgage applications being affected by outstanding County Court Judgements appearing on a credit file, CCJs that are paid in full at a later date can remain on the credit file for up to six years. Lenders will therefore be able to see that there was once an outstanding debt despite the fact that is has since been cleared. Although the entry will indicate that the debt has been settled, it may not be removed completely. This means that a person may be forced to apply for bad credit mortgages several years after paying off their County Court Judgements.
Many lenders will now consider mortgage applications from people who suffer from bad credit. In fact dozens of specialist lenders that focus solely on bad credit mortgages have appeared in recent years so individuals who have bad credit will not necessarily be unable to buy a home. Although the recent credit crunch has seen such lenders dwindle in numbers in recent times, specialist lenders still exist and offer mortgage products.
Because the market for bad credit mortgages is highly specialised and many of the lenders are too small to open their own branches to the public, it may be necessary to apply for bad credit mortgages through a mortgage broker.
An independent mortgage broker will be able to search the entire market for bad credit mortgages using special software. This can save both time and money when compared to searching for a mortgage on your own because an independent mortgage broker will have access to the entire mortgage market and will be able to find the most suitable bad credit mortgages to suit your personal situation. If you require a bad credit mortgage product contact an independent advisor today for impartial advice.
By: michael sterios
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Friday, February 26th, 2010 at
1:58 am
Getting that perfect mortgage for your new home is always made better when you know that you got a good deal on it. It is always comforting to find out that you are still happy with it even some time later. The way to find that perfect deal, though, could begin with something as simple as making a choice between a direct lender or a mortgage broker. Here are some thoughts to show you why one may be better than the other.
Before any of the differences are looked at, there are some things that are common to both. The first thing, though this might surprise some, is that both are usually paid on a commission basis. While it is often pointed out that mortgage brokers only get their money from the actual sales of mortgages, the same is true of loan officers at a bank. In other words, both have the exact same motive for helping you – they want to make a living, and, they both get a portion of the cost.
This makes it so that both of them are operating on the same principle – more sales equals more money. Other than that, both of them will draw from various mortgage products and both will try to fit the client with the best mortgage product that they have at their disposal.
The Differences
Now, for some of the differences. Here is where you will find a much larger field, and it is one that will bring about a large difference.
?The Products Available
A loan officer is simply the front man for an organization – the bank. He or she is the one that you will deal with when seeking a mortgage. Since they are essentially an employee of the bank or other lending institution, they will can only receive money when they sell that particular company’s mortgage products. To put it plainly, they can only show you the products they are given – from one company. Although there may be a rather large number of products, they are limited as to what the company offers.
A mortgage broker, on the other hand, would have at his or her disposal, an extremely wide selection of products because they regularly deal with many companies. In fact, a mortgage broker can represent a couple of hundred different companies, and therefore would be able to offer many hundreds of different mortgage options – possibly even thousands of options.
?Level Of Commitment
Another difference between a direct lender and a mortgage broker is the matter of his or her personal interaction with you. Now every person is different, but generally, you will find that a direct lender will be much more business-like in his or her demeanor. It will be more of an official visit.
A mortgage broker, on the other hand, will usually be much more friendly, relaxed, and personable with you. They honestly value your business and they will usually let you know it. It would not be unusual if a broker even visited you in your home to go over some details or talk with you some more. They often give you more time to talk person-to-person than a lender will, and they will be very glad to take the necessary time to make sure you understand all the details.
Apart from this, a direct lender may not be as committed to you as a mortgage broker. A loan officer knows that people will come to the bank looking for loans simply because it is a bank. They can get by with doing little and there may not be a lot of incentive on the part of the loan officer to go an extra mile for you. The reputation of the loan officer is not the same thing as the reputation of the bank. With a mortgage broker, however, his or her reputation is the business. They want your business and will often work hard to find a mortgage product that is suited to your needs. They know that a satisfied client will speak for their business in years to come – especially if you know a lot of people.
?Greater Options
In most cases a direct lender, especially one that has been in the business a while, will often stay away from certain loan products. This will tend to make their products better for people with good credit and a strong ability to repay the mortgage. This makes the loan officer extremely limited because most of their products (if any) may not be suitable for those who have less than good credit. The interest rate of a standard lender for this type of situation would make the interest rate too high for most – if a loan could be extended at all.
A mortgage broker, though, regularly deals with people in this situation and quickly knows which lending agency to call on that could provide a mortgage at a better rate for someone with a lower credit score.
?Better Deal
A direct lender is more likely to give you a deal without being able to provide much of a leeway when it comes to interest rates or extra fees. The lending agency itself would set these fees and the interest rate based on certain parameters and the loan officer usually is not able to vary much from it – except upwards.
Once again, though, because the mortgage broker is dealing with many companies, and each lender he deals with knows it, they will provide (in many cases) a greater flexibility for him to vary several factors – thus often resulting in a slightly better deal.
Advantages Of A Direct Lender
While there are certainly a number of advantages that do make the mortgage broker appear to be the better way to go, there are also some things to consider that may point the other way. One thing that could make the bank officer a possible better way to go would be if you already have a mortgage with that bank. It is possible that, since they already have your paperwork in this case, that you may be able to save on a lot of the expense of either remortgaging or getting a second mortgage. It also may be better because many lenders will give you a discount if you have more than one loan with that bank.
Another possible advantage is that a broker may contact a lender in other parts of the country. This could tend to slow down the mortgage process if they are not familiar with the various reasons of why a house in your area may cost more, and be worth more in your area than in another. They would have to take the time to search out the matter satisfactorily, which could delay your mortgage – and possibly set back the closing date. A local lending institution would already know the values of buildings in that region and would not have difficulty with it.
By: Eric Morgan
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Wednesday, February 17th, 2010 at
12:32 am
Is it possible to get a loan even with a bad credit mortgage? In today’s mortgage and loan trends, bad credit mortgages are absolutely possible.
In the past, applying for a loan involves a thorough check up on your credit history and income background. If your history is less than perfect or if your income is not that high or both, then your application for a loan is instantly rejected. This practice limits the number of people who can apply for a loan.
Today’s market has adopted more flexible methods. Bad credit mortgages makes it possible for people with low credit scores to still apply for a loan and get approved. When applying for bad credit mortgages loan, no pre-qualification process is involved. Lenders who offer bad credit mortgages among their list of loan programs give their customers a chance to redeem themselves. With bad credit mortgages, your credit history is nothing more than history and you still get your money’s worth.
There are several lenders who offer bad credit mortgages. When you choose one, make sure that you’ve learned everything that you need to know about bad credit mortgages. More often than not, bad credit mortgages sound too good to be true. With bad credit mortgages, It’s best if you keep an eye on the catch.
Bad Credit Mortgages for Higher Interest Rates
Bad credit mortgages are usually characterized by high interest rates. Lenders charge borrowers higher interest rates for their bad credit mortgages as compensation for the risk they take. Like it or not, borrowers who have bad credit records are loan risks and are viewed as such by lending companies. In exchange for letting these types of customers get bad credit mortgages, higher interest rates are charged. This helps protect the lender should something happen and he had to foreclose on bad credit mortgaged property.
Discount Points in Bad Credit Mortgages
Discount points in bad credit mortgages are common. A discount point is comprised of a percentage of the total purchase price. Bad credit mortgage borrowers are charged higher discount points, usually four to five points. Borrowers with credit may not pay for these points or they do but only for a very low percentage. With bad credit mortgages however, points may go as high as ten, although going this high is not a common practice and against federal law. It all boils down to insurance for the lending company. Lending companies want to make sure that they’re getting their money back from their customers’ bad credit mortgages.
Larger Down Payments for Bad Credit Mortgages
The amount of down payment required for borrowers on bad credit mortgages is larger compared to other loan types. In exchange for ignoring the costumer’s credit history, lenders charge larger down payments from the total purchase price. Borrowers may not be able to afford the upfront price of bad credit mortgages. If in any case, you can afford the down payment required, a bad credit mortgage might even prove a good thing for you. Since the down payment you made takes a considerable portion of your purchase price, this means that you pay lower monthly rates on your bad credit mortgage.
By: Lorna Mclaren
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