Bad credit mortgages

Monday, 07 February 2011 02:36

A bad credit mortgage, also known as a non-conforming mortgage, is a loan secured against the value of a property designed for people with poor credit histories.

Bad credit or non-conforming mortgages typically charge one to two per cent more than standard mortgage deals, but are available to people denied access to standard mortgages because of a bad credit score.

While more expensive than standard mortgages, bad credit mortgages offer people a far better deal than borrowing conducted on credit cards or through doorstep lenders.

Recent studies also show that by taking out a non-conforming or bad credit mortgage people with low credit scores can repair their credit rating, allowing access to cheaper mortgage deals after the credit rating improves.

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