Bad credit mortgages not always more costly

Friday, 01 June 2007 12:00

Having a bad credit rating does not mean you have to pay through the nose with a bad credit mortgage, new figures show.

Data from L&C, the UK's largest fee-free mortgage broker, shows some 71 per cent of credit impaired borrowers who have come to them this year have secured a mainstream mortgage deal.

While the majority of high street mortgage lenders refuse borrowers will a recent history of defaults or County Court Judgements (CCJs) it is not a simple case of black and white.

Many borrowers with minor blemishes will be accepted by at least one mainstream lender.

"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," said James Cotton, 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.

"Not only that, but L& C customers never pay a broker fee, regardless of good, bad or indifferent credit history."

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