Bad credit history 'doesn't have to mean bad mortgage deal'
Published On 31 May 2007
Having a bad credit rating does not necessarily mean customers can only obtain a poor mortgage deal, a leading lender has claimed.According to L&C, 71 per cent of people who have come to the company with a bad credit rating have been able to secure a mainstream mortgage deal with a competitive interest rate.
Many people believe that a recent history of bad debt or County Court Judgements (CCJs) would prevent them getting competitive mortgage deals. However, L&C revealed that the situation is less clear than that, and that some lenders are more lenient that others.
"All too often, people assume that because they've had some credit problems in the past, they will have to pay a much higher interest rate and in some cases, high broker fees," explained James Cotton, a mortgage specialist at L&C.
"In fact, our research shows that by getting whole of market advice from L&C, borrowers can seek out the best deal for their circumstances and can often secure a better rate than they thought possible."
A recent study from the Mortgage Trust found that record numbers of people were opting for fixed-rate mortgages.
As interest rates have risen, the percentage of people choosing these sorts of mortgage has increased from 48 per cent to over 60 per cent.
