You see the advertisements in newspapers, on TV, and on the Internet about credit repair. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims:
Do yourself a favor and save some money, too. Don't believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report. But you can take bad credit mortgage and repaying it you will repair and improve your bad credit rating. Applying on bad credit mortgage you can see that many different options are available, whatever your situation; first-time buyer, home mover, remortgaging, buy-to-let or Right to Buy.
Bad credit mortgages will help you rebuild your credit quickly. If you want to apply for a bad credit mortgage, you'll need several pieces of information before you proceed. First, make sure your credit report and score are accurate. If removing old or closed accounts or removing something that is incorrect from your credit report can improve your score, even slightly, it is worth the effort. Next, you'll need data on your income including pay stubs, deposit slips and the like. Bad credit mortgage loans will often hinge on your proof of steady income. Finally, you'll have strict repayment guidelines. Make sure you can make the payments on time and in full. Don't get in over your head and make your bad credit situation even worse.
Advantages of bad credit mortgages
You invest in your own property as opposed to renting; mortgage repayment are likely to be equal or slightly higher than monthly rent, you can use this equity later in life to move up the property ladder.
Bad credit mortgages can be a temporary solution; after about 3 year, provided you've kept up all your payments and your credit rating has improved, it will be possible to remortgage to a standard mortgage and benefit from a lower interest rate.
You will also find out that:
· Bad credit mortgages allow thousands of people access to home loans they might otherwise not get.
· Increased competition means the interest rates charged have come down considerably in recent years.
· A full range of mortgage types is available.
· They are still more expensive than mainstream mortgages and will remain so.
· You can only get a bad credit mortgage via a mortgage broker.
When considering your options for bad credit mortgages, look out for the following three pitfalls that can sneak up on you: