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From: wwwbug
Date: 06 Nov 2005
Time: 12:31:46
Remote Name: 58.82.12.142
KEYWORDS OF ARTICLE : 1 Car Loans http://www.aoao.info/search/car-loans 2 Used Car Loan http://www.aoao.info/search/used-car-loan 3 Car Rentals http://www.aoao.info/search/car-rentals 4 Home Equity Loans http://www.aoao.info/search/home-equity-loans 5 Refinance http://www.aoao.info/search/refinance 6 Loans http://www.aoao.info/search/loans 7 100 home equity loan http://www.aoao.info/search/100-home-equity-loan 8 best consolidation loan student http://www.aoao.info/search/best-consolidation-loan-student 9 student loan consolidation center http://www.aoao.info/search/student-loan-consolidation-center 10 student loan consolidation program http://www.aoao.info/search/student-loan-consolidation-program 11 uk homeowner loans http://www.aoao.info/search/uk-homeowner-loans 12 federal student loan consolidation http://www.aoao.info/search/federal-student-loan-consolidation 13 home equity loan http://www.aoao.info/search/home-equity-loan 14 e loan http://www.aoao.info/search/e-loan 15 consolidate student loans http://www.aoao.info/search/consolidate-student-loans 16 home equity loan rates http://www.aoao.info/search/home-equity-loan-rates 17 homeowner loans http://www.aoao.info/search/homeowner-loans 18 equity loan rates http://www.aoao.info/search/equity-loan-rates 19 student consolidation loans http://www.aoao.info/search/student-consolidation-loans 20 federal consolidation loan http://www.aoao.info/search/federal-consolidation-loan 21 student loan consolidate http://www.aoao.info/search/student-loan-consolidate 22 consolidate loans http://www.aoao.info/search/consolidate-loans 23 secured loans http://www.aoao.info/search/secured-loans 24 home loans refinancing http://www.aoao.info/search/home-loans-refinancing 25 consolidate college loans http://www.aoao.info/search/consolidate-college-loans 26 home refinance loans http://www.aoao.info/search/home-refinance-loans 27 125 equity loan http://www.aoao.info/search/125-equity-loan 28 125 home equity loan http://www.aoao.info/search/125-home-equity-loan 29 100 home equity loan http://www.aoao.info/search/100-home-equity-loan 30 ARTICLE If you have a blemished financial record, don't despair. Lenders will give you credit for honesty, says Lorna Bourke YOUR business has gone bust, arrears are mounting on the mortgage, the credit card company has issued a writ, and your wife is threatening divorce. Luckily you have found a job, but you need to remortgage your property to settle your debts, or move altogether to sort out the divorce. Disaster all around. What can you do? Surprisingly, quite a lot. "If the person has a convincing story to tell about how they got into financial difficulties and how they intend to deal with the situation, we can often help," explains John Heron of Paragon Mortgages which specialises in so-called "niche" lending. On average, 65% of applications from those with "impaired credit" track records are approved even if the history includes more than three adverse County Court Judgements (CCJs) as well as mortgage arrears. "We look at each case in a lot of detail before we decide whether we can help. We are looking for three characteristics. We want to know that at some time in the past the person has had a good credit track record, we want to see some reason why they got into difficulties and we want to know why things will be better in future. "We are talking about people who have got into serious difficulty as a result of a major life change - divorce, bankruptcy, redundancy or ill health are typical. But we can help most of these people." Chris French of Kensington Mortgage Company takes a similar line. "Our typical customer is someone who has suffered a lifetime change like divorce, illness or redundancy, who has managed to survive and whose prospects now look reasonable," he explains. "Increasingly, we are seeing wives who are going back to work after a divorce, but are having difficulty getting a mortgage because of arrears when they were married." Kensington Mortgage Company is the only "non-status" lender which is a member of the Council of Mortgage Lenders. It only does business through brokers registered with the CML. Yellow Brick Road (Preferred Mortgages) has applied for CML membership and subscribes to the Code. Kensington Mortgage Company will consider home loans to discharged bankrupts, ranging from four years from discharge at 90% loan to value, to any case that is discharged if you want to borrow only 75% loan to value. If you have CCJs from GBP 5,000 and upwards which have been fully paid off, you can borrow up to 90% loan to value, but only 75% loan to value if the CCJs have not yet been paid off. If you are a less than perfect credit risk, there are a few golden rules when applying for help with finances. "You must tell the whole truth," warns Ian Darby of mortgage broker John Char-col. "Do not hide anything, however bad it may seem. "Keep handy all the documentation from your creditors. One of the major problems is that homebuyers say that they had an agreement with the lender to suspend payments, but the lender disputes this. If there is no documentation to back it up it is more difficult. We need to know as much as possible about your past history." John Heron agrees. "Lending in this situation depends entirely on trust and open disclosure. If something adverse comes up unexpectedly half way through the lending process, that trust takes a knocking." Be aware that all lenders will check your credit rating with credit reference agencies, your previous lenders and a variety of other sources, so it is virtually impossible to hide anything. Needless to say, if your credit track record is less than perfect, you are going to pay more for your money - but, surprisingly, not as much extra as you might think. Depending on the ratio of the loan to the property's value, and the number of bad debts and arrears you have incurred, you would pay around 9.65% with Paragon, for example. But if you maintain your payments, this will come down to the standard variable rate of 8.65% after three years. "Our rates depend on the degree of risk," says David Priest of Household Mortgage Corporation, a subsidiary of Abbey National. "If someone wanted a 95% loan to value, and had one County Court Judgement, then we would charge 2.5% over our standard rate of 8.99%. But we do reduce the rate by 0.5% for each year the borrower maintains payments, until they are down to the standard rate." There are a number of lenders in the "impaired credit" and "non- status" market. Impaired credit borrowers are people who have stumbled into financial difficulties and have bad debts. However, all these alternative loan facilities are not just for people who have been through the financial mill. Non-status borrowers are often those who do not meet the normal lending criteria because, for example, they have recently become self-employed and cannot provide three years' audited accounts. In addition, on paper they may not be making enough to support the loan because they are ploughing profits back into the business. But they may have no bad debts at all. "For most non-status borrowers where there is no adverse credit track record we can arrange loans at normal rates," says Ian Darby. "We have special arrangements with a variety of lenders who are prepared to grant loans to, for instance, contract workers. As long as there isn't negative equity on top of an adverse credit track record we can normally help." Virtually all this business is done through intermediaries but make sure you deal only with brokers registered with the Council of Mortgage Lenders. John Charcol Mortgage Brokers Tel: 0171 611 7000 Kensington Mortgage Company Tel: 0800 111020 (registered with the CML) Paragon Mortgages Tel: 0800 440099 Household Mortgage Corporation Tel: 01494 459100 Yellow Brick Road (Preferred Mortgages) Tel: 0800 009977 The Mortgage Business Tel: 0800 454662 Future Mortgages Tel: 0118 951 4940 Useful numbers