Adverse Credit Explained

Remortgage with Arrears
Arrears are mortgage payments which have not been paid by the date they are due, or have only been paid in part. Having arrears will normally result in an adverse credit history - which will mean that if you want to remortgage with arrears you will need an adverse credit mortgage.

Recent figures, published by the Financial Services Authority, suggest that the number of mortgages falling into arrears has increased throughout 2008. The 15% increase in arrears in the first quarter of 08 suggest that many homeowners are finding it difficult to meet their mortgage payments due to expensive mortgages and rising household costs.

If you find yourself falling behind on your mortgage payments, the first (and most important) thing to do is contact your lender. For more information on arrears, we recommend reading the FSA's Money Made Clear guide.

Money Made Clear : www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf

Remember - your home could be at risk if you fail to meet your mortgage repayments.

Bankruptcy
Bankruptcy occurs when someone owes more money than they are able to repay. The person is then stopped by a court of law from managing his or her own financial matters, and allocated an allowance to live on.

After three years an individual will be discharged from bankruptcy, however the bankruptcy will be recorded on their credit record for another 15 years.

County Court Judgements (CCJs)
Usually abbreviated to CCJ's, County Court Judgements are records of disputes over owed money, and can be harmful to your credit record.

If you owe someone some money (referred to as a 'creditor'), they can make a claim to regain the money through a County Court. You will then receive a letter, known as a County Court Claim. If you pay the money you can avoid a court hearing. If the money owed remains unresolved, and the court hearing goes against you, you will receive instructions on how much you owe, and how to repay the money - known as a County Court Judgement.

Unless you repay the owed money within a month of the court hearing, the CCJ will be recorded on your credit history. As a result, when you make an application for a mortgage or remortgage, the lender will see any CCJs that have been served against you, and could damage your application from being approved.

For further information on County Court Judgements, and for instructions on how to get advice, we recommend visiting the Government's advice page:

www.direct.gov.uk/en/MoneyTaxAndBenefits/

Individual Voluntary Arrangement (IVAs)
An Individual Voluntary Arrangement is an agreement between a creditor and an individual who is unable to repay his debts in full. By entering into an IVA, the individual agrees to repay the money over a fixed term (usually five years), after which the debts are considered as settled.

To enter into an Individual Voluntary Arrangement, the agreement needs to be arranged by a licensed professional, known as a Insolvency Practitioner. The monthly repayment is calculated upon the disposable monthly income of the debtor.

For more information on IVA's visit The Insolvency Service:

/www.insolvency.gov.uk

Adverse Credit Remortgage Quote
If you're not sure whether you qualify for an adverse credit remortgage you can complete a free no obligation enquiry form here at Cheapest Remortgage. Simply click here:

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The More Group can regulary obtain mortgages for clients with impaired credit at an overall cost for comparison of 7.8% APR.

When considering a remortgage, always remember: Your home may be at risk if you fail to keep up repayments on your mortgage.

Self Certification Remortgage

Many lenders will not recognise income as being reliable or steady unless it is regularly paid on a weekly or monthly basis and is documented by a normal payslip. This can mean that many workers, perhaps contract, temporary, self-employed, people starting their own business and so on would not be considered by those lenders for a standard mortgage.

Independent remortgage advice
By completing our secure online Enquiry Form, you can discover how much you could save over the remainder of your mortgage term. As an a whole market mortgage broker we hold no bias towards any one lender, and will not recommend remortgaging unless it is beneficial to you.