Updated November 20th 2021.
Subprime Mortgage Advisors.
Our Mortgage Experts Online accredited advisors are specialists in subprime mortgages. Furthermore, our bad credit mortgage expert’s knowledge will help you to find the right subprime mortgage on the market.
From big high street banks and building societies, to smaller more niche mortgage lenders, there is a lot of choice out there. subsequently, this may feel completely overwhelming to you and you may have no idea where to start.
We can offer you guidance and help you navigate the complex world of subprime mortgages.
The brokers we work with are whole of market and offer completely unbiased advice, ensuring that you get the absolute best deal available.
Scroll down for more information and FAQ’s.
Subprime Mortgage Topics.
- What is a subprime mortgage?
- What deposit levels will I need for a subprime mortgage?
- Will I need a subprime mortgage?
- What interest rates would I pay for a subprime mortgage?
- Will I need a subprime mortgage broker?
- Speak to a subprime mortgage advisor
What is a subprime mortgage?
Subprime mortgages are also known as bad credit mortgages or specialist lending. Subprime mortgages are available to people who do not fit with a high street lender.
Reasons could be down to previous bad credit or a having a more complex set of circumstances.
Interest rates are always a reflection of risk, so the higher the risk the high the interest rate. As such bad credit mortgages tend to have higher interest rates and arrangement fees than high street mortgage lenders.
Bad credit mortgages take care & attention, your subprime mortgages expert will ensure you are placed with the best lender for your circumstances.
The first thing to do is obtain an updated copy of your credit report, to check your credit report click here.
How does a subprime mortgage work?
Subprime mortgages often carry a higher rate of interest than prime mortgages. With any sort of lending, higher interest rate are an indictor of a higher risk taken by the mortgage lender.
The subprime lenders will carry out more extensive checks than prime lenders, most subprime mortgages are only available through mortgage brokers.
What deposit levels will I need for a subprime mortgage?
This will come down to the level of adverse credit and the date it was registered.
For historic adverse credit it is possible to get a mortgage with a 5% deposit but only by using the government backed Help to Buy Scheme. Click here to read all about the scheme. More than likely you will need to have a minimum of 10% and ideally 15% deposit.
For more recent adverse such as bankruptcy & IVA’s you could need as much as 30% deposit.
Your bad credit mortgage expert will be able to tell you exactly how much deposit you will need for your set of circumstances having discussed this with you.
Will I need a subprime mortgage?
There are many reasons you might need to use a bad credit mortgage. This could be something minor such as a low credit score through to bankruptcy & repossession.
The subprime mortgage market is complex, and you will need a mortgage expert to advise on the best options available to you.
You will also need to be aware that many of the subprime lenders only accept applications from intermediaries. Read our article on bad credit mortgages.
An example of the reasons you might need to use a subprime mortgage lender.
- Low credit score.
- Missed payments.
- Debt relief order.
- Debt management plan.
- Financially linked to another person.
What interest rates would I pay for a subprime mortgage?
This will vary from lender to lender and the loan to value (how much deposit you have). Typically, the rates will be between 3% and 6%, however in some circumstances of severe adverse coupled with non-standard construction this could go as high as 8%.
The subprime market is forever evolving, so contact one of our subprime mortgage experts to find out the most accurate figures/rates.
Will I need a subprime mortgage broker?
The bad credit mortgage market is very specialised, with each lender having different criteria and an appetite to lend based on several factors.
Because of the higher interest rates its vital to make sure you are placed with the correct lender on the best rate available.
Most subprime lenders only accept applications via a mortgage intermediary, this means you that you are not able to apply to them directly yourself.
Your subprime mortgages expert will run through all the details with you, check your credit report and discuss your case with the business development manager.
Taking these steps will ensures that any application has the best chance of being accepted.
Firstly, your broker will need to see a copy of you ” Check my File ” credit report. Secondly, they will run through a fact find, getting all the relevant information from you.
Thirdly, they will make a detailed recommendation and answer any questions you have.
Speak to a subprime mortgage advisor.
There are many lenders available ranging from high street to specialist lenders. Most people go to their own bank, get declined or cannot borrow what they need.
However, just because one lender has declined you, do not give up.
Our subprime mortgages experts will look at each case before deciding which lender is right for you and your individual circumstances.
Furthermore, all the mortgage brokers we work with are whole of market and offer unbiased advice.
They will have access to all the specialist lenders to really enhance your chances of achieving the mortgage you need.
The expert bad credit mortgages brokers we work with have experience in dealing with all aspects of subprime mortgages and coupled. with using the whole of the market to access the best deals available.