Mortgages London | Mortgages in London

Borrowers with a bad credit history make up 14 per cent of mortgage applicants according to a recent report, and are more likely to pay a much higher interest rate than their more money savvy house-buying counterparts. However, a bad credit rating is not necessarily the fault of the borrower, and as such anyone wanting to take out a home loan should seek free mortgage advice to save money and rectify a bad borrowing reputation.

To make sure that you can access the best mortgage deals possible for your London home, speak to mortgage advisors about turning your high risk lending status in to a low risk. Advisors are currently telling borrowers that they need to prove to lenders that they are capable of managing debt. Contrary to logic, financial institutions offer the best rates to those who have existing debts rather than someone who has never had to borrow before. With a credit card or personal loan a borrower can demonstrate that they are capable of making continuous payments. It is essential that no payments have been missed to ensure you have a good credit rating.

If it transpires that you have a bad credit rating because of situations beyond your control, for example through redundancy, divorce or even applying for loans unsuccessfully, a mortgage advisor can help you better your credit rating, and even negotiate a favourable mortgage deal on your behalf. Although there are some lenders that have mortgages tailored towards those with a less than favourable credit history, the market is actually beginning to become competitive again and differences in interest rates less extreme. A good advisor will be able to overhaul your entire financial portfolio, transforming your profile from high risk to low risk.

This advice is not just for those looking to buy a home in London; free mortgage advice is available from any high street lender in the UK. However, the prices of London properties are much higher than elsewhere in the country and therefore more difficult for those with a bad financial reputation to purchase at a reasonable interest rate.

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