Bad credit does not have to mean a higher mortgage rate

Having a poor credit rating does not always result in a higher mortgage rate according to research from London and Country Mortgages (L&C), fee-free mortgage broker.

So far this year, 71% of borrowers who have come to L&C with some credit problems have been able to get a mainstream mortgage deal.

Most high street mortgage lenders will not accept borrowers will a recent history of defaults or County Court Judgements (CCJs). However, it is not a simple case of black and white and some lenders are more lenient that others. L&C has found that many borrowers with only minor blemishes on their record are surprised to find themselves accepted by a mainstream lender.

James Cotton, Mortgage Specialist at L&C comments, “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. 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.”

This year L&C has also pledged to make every mortgage it arranges a ‘green’ mortgage by planting 50 trees, including adverse credit deals. There are currently no other ‘green’ mortgage deals available in the adverse sector.