If you have been turned down for a mortgage due to past or current credit problems, you are not alone. Every year many people find themselves in this situation due to breakdown of relationships, illness or redundancy. Such situations can put a massive strain on household income and can result in missed or late payments which can show on your credit file and effect your ability to obtain a mortgage from the high street.

Fortunately there are a number of specialist mortgage lenders who are willing to lend to people in this situation and help them get back on track.

As this area of the mortgage market is complex we recommend you seek the advice of a professional mortgage adviser who can assess you individual circumstances and find the right mortgage for you. Here at Pink we offer impartial advice from a team of professional mortgage advisers who can help you make the right decisions.

Types of adverse credit

An adverse entry can be made on your credit record for a number of reasons. Below is a list of some of the most common:-

• County Court Judgment (CCJ) - A judgement handed out by the court for non-payment of a debt
• Mortgage arrears - missed payment(s) on an exisiting mortgage or secured loans account.
• Repossession - Failure to pay a mortgage or secured loan has resulted in the property being taken back by the lender to cover the amount of loan outstanding
• Bankruptcy - Person declared by the court as unable to repay their debts

Your credit reference

If you have been refused a mortgage you may want to obtain a copy of your credit file to check any adverse entries that may be on your record.

A copy of your file can be obtained from:-

Experian

Log on to : www.experian.co.uk

Call - 0870 241 6212

Write to -

Experian
Consumer Help Service
PO Box 8000
Nottingham
NG80 7WF

Equifax

Log on to : www.myequifax.co.uk

Call - 0870 0100 583

Write to -

Equifax
Credit File Advance Centre
PO Box 1140
Bradford
BD1 5US

Call Credit

Log on to : www.callcredit.co.uk

Call - 0113 244 1555

Write to -

Call Credit Plc
One Park Lane
Leeds
West Yorkshire
LS3 1EP

Financial Matters

How much can I borrow?

The amount you can borrow will be based on an assessment your individual circumstances and the amount of adverse credit you have. Most lenders will look at you levels of income, amount of outstanding debt and your payment history when calculating the amount they are willing to lend

What types of mortgages are available?

There are now far more lenders to choose from in the adverse credit market. Mortgages are available as fixed, discounted and tracker rates with differing options to suit your needs.

What fees are involved?

As with any residential mortgage transaction there are a number of fees that you will need to budget for. An up front valuation fee will be required, the cost will vary according to the estimated value of the property and it's location.

Some lenders will require arrangement and rate reservation fees, either to be paid up front or in some circumstances be added to the mortgage advance.

You will also need to consider solicitor's costs, buildings insurance, stamp duty fees and any service charges that will apply if the property is a flat.