Adverse Mortgages UK

There is no reason why someone with an adverse credit record should not be able to obtain a mortgage in the current market, according to an independent financial adviser.

Some British lenders have become stricter about who they will provide credit to in recent weeks, having seen the problems experienced by many sub-prime mortgage lenders in the US.

However, Mike Pendergast of Zen Financial Services insisted it was rare for anyone to be turned down for a mortgage completely, as even people with an adverse credit history can usually find a lender willing to do business with them, providing they are prepared to pay above the market rate.

"Most lenders will do adverse mortgages which are similar to a normal mortgage but they'll charge a bit more in terms of interest or arrangement fee," he explained.

While mortgages may still be available to most people, it appears credit cards are becoming more difficult to obtain for people with an adverse credit record, as Barclaycard recently revealed it now rejects half of all applications for its cards.

© Adfero Ltd

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