Bad Credit - What is it and how to get home loan help if you have it!
What Is Bad Credit?
When it comes to impaired credit, there are many kinds; the main ones include:
- Bad Credit History – Negative marks like bankruptcy, defaults, court writs, judgments and an excessive amount of credit enquiries could lead to mistrust in your loan application.
- Mortgage Arrears – If you’ve missed payments on a home loan, it could call into question your stability. The more missed payments you have in the last six months, the more apprehensive lenders are going to be. In essence, major banks and 2nd tier banks/lenders are not liable to refinance a loan, even if you missed one repayment.
- Unpaid Taxes or Bills – Having unpaid bills or even tax bills may not appear on your credit file but may be seen on any provided documents you give.
- Lender Credit History – your previous credit history with the lender you’re applying with will also be looked at. If you’ve had trouble with a lender previously, even if it’s years ago, they’re going to remember it.
- Too Many Commitments – If you’ve got an excessive number of debts for your income or the total amount of assets is less than the total number of liabilities, major banks and other lenders may consider you beyond help.
- Financial Business Problems – If your company is in dire financial straits, such as liquidation or receivership, it can hurt your chances of getting a loan.
A Look at Non-Conforming Lenders
When it comes to getting loans from a non-conforming lender, they are considered much more flexible than traditional banks. The offered interest rates are generally reflective of the risk the lender takes. If your loan is considered highly risky, the interest rate will generally be higher.
Non-conforming lenders will take a look at each individual home loan application, listening to your story as to what happened and why you’re looking for debt relief or finance. Many of these lenders will often quickly approve the loans to meet creditors’ deadlines.
- If you’re asking for 80 percent or less of the home’s property value, you could attain a lower interest rate
- People who need to borrow more than 80 percent or who have really bad credit can expect a higher interest rate
Who Would Qualify as a Non-Conforming Lender
There are a multitude of non-conforming lenders who can assist borrowers in being approved for a home loan even if they have negative marks on their credit report. Some non-conforming lenders include:
- Liberty Financial
- Bluestone Mortgages
- Pepper Home Loans
- Adelaide Bank
- La Trobe Financial
Over the years we have forged excellent working relationships with the Lender noted above and some other niche non-conforming lenders with an appetite for bad credit loans.
With non-conforming loans the devil is in the detail and you should always consult with a specialist mortgage broker who understands the lenders credit policy and can package and present your loan application in the best possible light to the lender. The team at Sherlock are experts when it comes to bad credit loans with over 10 years experience in the field. Feel free to contact us today to discuss your bad credit lending options.
Simply fill out our no obligation Free Quote form and we will tailor a comprehensive loan proposal suited to your specific bad credit lending needs. This does not constitute an application and your credit file will not be affected by requesting a quote.