Bad credit ‘not necessarily cause for high mortgage rate’
A person with a poor credit rating will not necessarily see a higher mortgage rate from a poor credit mortgage, it has been claimed.
Mortgage broker L&C has claimed that of the people who have come to them for a mortgage deal this year, 71 per cent have walked away with a mainstream agreement.
The company stated that it may be a case of picking the right dealer to find mortgages for bad credit as some are more lenient than others - so a person with a minor blemish on their credit record may actually find themselves rejected.
And James Cotton, mortgage specialist at the organisation, has remarked that public perception of the matter may be inaccurate.
"Our research shows that by getting whole of market advice from L&C, borrowers can seek out the best deal for their circumstances and can often secure a better rate than they thought possible," he said.
Recent research from Rightmove.com shows that homebuyers have slowed in their hunt for houses due to the recent rises in the base rate of interest.
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