As the name suggests, if you are considered to be 'credit impaired' it means that your credit history is not ideal. CCJ's, defaults, missed credit payments, and bankruptcy all have an adverse effect on mortgage applications. Many 'high street' lenders will refuse you on these grounds alone!
Or perhaps you have fallen into arrears on a previous mortgage, which may not be your fault. For example, on divorce many people are advised by their solicitors to stop making mortgage payments on their property until the affairs are sorted out.
As some marriages end in divorce, that is potentially a lot of people in arrears. You may have been declared bankrupt at some point. Again, this may have been out of your hands. Or you may be turned down by a lender simply because you have a county court judgement (CCJ) against your name.
You can incur a CCJ for not paying a utilities bill or just for skipping a book club payment.
This is where an independent mortgage broker can sometimes help.
Despite popular belief that people with adverse credit history cannot get a mortgage there is still availability in todays much restricted mortgage market place. In fact some of the niche lenders who disappeared in late 2008 have now returned such as igroup.
However it must be said that any serious issues with your credit history may well restrict your borrowing to 75% or less. At Coleman Clough we treat each case on an individual basis and you may be surprised at what you can achieve even with bad credit history problems.
Call us free on 0800 0029555 to have a discreet chat about your mortgage and your credit history.