Sometimes referred to as sub-prime or non-status, designed for borrowers who do not fit lenders standard criteria due to County Court Judgements, Defaults, Mortgage Arrears or inability to prove income. To reflect the extra risk to the lender, interest rates on adverse lending tends to be higher than standard rates and also lenders will offer a lower percentage of loan to property value.
If a borrower has one or two small satisfied CCJ's and no mortgage/rent arrears during the last 12 months then it should be possible to get a mortgage with a mainstream lender at standard rates up to 95% of the property value.
For borrowers with CCJ's of up to £5000 and mortgage/rent arrears of up to 2 months it should still be possible to get a mortgage up to 95% of the property value, at 1-2% above standard rates provided the mortgage/rent arrears can be cleared prior to making an application.
Unlimited arrears and CCJ's are acceptable up to 85% of the property value, although this reduces to 80% for a re-mortgage. The interest rate charged will depend on circumstances but will generally be 2-5% above standard rates.
If you have been discharged for over one year you should have no problem, you will be classed as medium adverse, if you're discharged for less than one year each case will be discussed on its own merits.
Up to 90% property value should be no problem here, on a self-certification of income. If you have an even larger deposit many mainstream lenders don't even bother to check your income and you should be able to get standard rates.
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