An adverse credit history could range from just a few missed or late payments here and there, all the way through to Default notices and County Court Judgements.
While all of this information will be relevant during a mortgage credit check and mean you might not be able to get one of the mainstream deals, providing your problems are in the past, it is still possible to find a mortgage.
We take a look at adverse credit mortgages and how to find the best deal.
Starting your adverse credit mortgage comparison
A bad credit mortgage works the same way as a standard mortgage but is typically found from mortgage lenders who deal with adverse credit.
Many high street lenders have tightened up their lending criteria in recent years and have increased their minimum deposit in many cases as well as restricting who they will provide a mortgage to.
So can you get a mortgage with a default on your credit file? The answer is yes, but only if you are prepared to consider adverse mortgage lenders as well as the usual high street banks.
However there is a downside, because mortgage companies for bad credit are willing to take on extra risk they charge higher interest rates. It's a good idea to use their mortgage calculator to check how much you are likely to have to pay when working out your budget as it could be more than you expect.
It's also very important to compare mortgages for adverse credit, ideally using a mortgages for poor credit comparison table. By comparing deals you will be able to find leading adverse mortgage brokers who offer you the best rates.
What else to check when looking for bad credit mortgage
Estimates suggest that as many as one in five people won't meet the criteria of high street lenders so it's little surprise that the number of mortgage companies for bad credit has grown substantially in recent years.
It's worth bearing in mind that as well as the adverse credit mortgage rates being higher, you will probably be asked to provide a higher deposit. It's certainly in your interests to do so if you can afford to, as this could ease the rates which you are charged.
But if a large deposit is out of reach, there are some 90% mortgages for people with adverse credit available. If you carry out a mortgage companies for bad credit comparison you will be able to identify the lenders who are willing to offer this.
Because there are so many mortgage companies for bad credit it can be tempting to apply to as many as possible to try and get the best deal. However this will simply lower your credit rating further. So be sure to only apply to lenders that will consider your application to not hinder yourself.
By carrying out a mortgages for bad credit comparison, you can find the deal which looks best for you circumstances and apply for just the one.
You might wonder why you should worry about damaging your credit score if you are planning on taking out an adverse credit mortgage. However, once you have been approved and the mortgage has been in place a couple of years, providing you have had no more problems you could qualify for a standard mortgage. This could mean a hefty saving so it's worth preserving your credit rating as much as you can.