Non Status Mortgages For Those With Poor Credit

Non Status Mortgages

If you are having difficulty getting a mortgage from your usual bank, and if you have a poor credit history, perhaps bankruptcy, or you have fallen in to debt through no fault of your own, then you may want to consider non status mortgages as the solution. With one in three people experiencing problems with their credit history, the mortgage industry has developed a way of arranging mortgages even among high-risk clients. . Poor credit history and bankruptcy can prove major drawbacks in the search for a regular mortgage, but non-status mortgages can provide a solution to these problems. This solution can also help those who are unable to provide proof of income, such as the self-employed.

Who Is Suitable For Non Status Mortgages

Non status mortgages are available to anyone who has problems obtaining a normal mortgage. That could be the self employed, or those on a fluctuating wage, and even those who have bad credit. Basically, bad credit is anything that will be held against you when you apply to lenders for a mortgage. This may involve bankruptcy, repossessions, failure to pay back loans, defaulting on payments, or anything else that has caused the bank to consider you a high risk customer. If you fall into any of those categories, then you might find that a high-street lender will just not take the risk; but a non-status mortgage can give you more leeway when it comes to purchasing a house.

What Does It Mean To Have Non Status Mortgages

With non-status mortgages, you do not need to provide proof of earnings, and you do not need to supply things like taxation documents. You will also not have to provide any evidence of previous mortgages. You will still have to undergo a credit check, and your lender may wish for references from landlords or previous employers.

Getting The Best Deal On Non Status Mortgages

As with everything financial, do not fall into the arms of the first company that accepts you. Shop around; the chances are that if one company will give you a loan, there is another one out there that will. You should always have a few loan options, otherwise how will you know when you are being given a good deal. There are now more companies offering non-status mortgages than ever before, it pays to look around.

Risks Of Non Status Mortgages

As with all mortgages, there are a few risks to take into consideration. Because of the high risk status of the mortgage, there are often higher premiums, greater interest rates, and greater risk for the homeowner. As the lenders are taking a greater risk in lending you the money in the first place, they are inevitably going to raise the prices. This can mean very high charges, which can be a bit daunting if you are already in debt. The good news is that with the expansion of the mortgage industry, there are more companies out there that need customers, and this is driving the premiums and interest right down, even amongst high risk clients such as those applying for non-secure mortgages.

CopyrightIan D. Major2006

Ian D. Major is the editor of http://www.affordable-mortgage-search.comAndromache Blog78434
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