Sub Prime Mortgages

Poor Credit Rating

In order to asses the likelihood of a lender granting you a mortgage they will endeavour to find out about your credit history before making this decision. Such a search may show that you have had credit problems in the past or indeed in the case of may first time buyers that you have no existing credit agreements in place and therefore you are showing no positive track record as a reliable payer. If such a search shows that you do have credit problems there is no need to worry. Every case comes before AIT Financial Solutions is treated on its own merits and we have access to a large number of lenders who are happy to provide a mortgage to clients who have had previous credit problems.

Mortgage or Rent Arrears

If you’ve missed mortgage or rent payments and have not been paid by the date you agreed, then searches may show that you have arrears. Missing mortgage or rent payments is seen by many potential lenders as a serious issue however AIT Financial Solutions are able to help in this matter as we have access to a number of lenders that take mortgage and rent arrears into account.

Debt Consolidation

Where it is possible to consolidate any existing credit commitments by making use of the equity within your home. By re-mortgaging and releasing this equity it is possible for you to make large savings in paying off existing credit cards or loans. These existing credit cards and loans maybe more costly and have a greater APR than the re-mortgage APR. There are a number of considerations you have to take into account such as the cost associated with increasing the period over which the debt is paid and are you happy to increase the amount of debt secured against your home.

No Proof of Income

If you do not fit the box in relation to your employment type then there is no need to worry. During recent years the patterns and types of employment have changed and the criteria as to how wether you can obtain a mortgage or not has also changed. in the past lenders relied on receiving proof of income in the form of payslips or P60’s for employed applicants however in today’s fast changing job market not everyone fits this box. Many people are now self employed or receive seasonal income, whilst others may rely on commission. If this is the case then it is possible to self certify your income where the lender accepts a declaration signed by you as to your annual earnings.

Self Employed

One of the main scenarios in obtaining a mortgage for self employed applicants is that they provide up to 3 years certified accounts as proof of their income. As discussed above not everyone fits this box and we will still be able to place a mortgage even if you do not have the 3 years certified accounts. Indeed it may even be possible if you have only been self employed for 6 months in order for you to obtain a mortgage.

Short Employment History

Most lenders base their decision on the amount income you’ve earned over the 12 months prior to your application. If you have not been in stable employment, or have changed jobs, this may adversely affect your mortgage application with some lenders however we will still consider such an application in thoughts circumstances, with appropriate references from your pervious and current employers.

County Court Judgements

In the event that you do not honour an agreed credit commitment and default on payments to that lender then you may be served with a county court judgement for the debt in the county court. If you’ve not settled in full within 28 days of the judgement, your county court judgement should appear on every credit search made about you for the next 6 years. Payments made after 28 days will be shown on the register as being satisfied.

Individual Voluntary Arrangement

A less formal alternative to bankruptcy is an Individual Voluntary Arrangement. This was introduced by the Solvency Act 1986 and was designed to be an alternative to bankruptcy. The debtor has to pay the whole or part over a period of time and this way the debtor could avoid bankruptcy or alternatively have bankruptcy order annulled through the voluntary arrangement. This is a way of working with your creditors in order to move forward without suffering the stigma of bankruptcy. Many lenders would not consider lending to a client with an IVA however we have access to lenders that would be happy to take on such clients.

Bankruptcy

Bankruptcy comprises an order made under the Insolvency Act 1986 against an individual debtor (not a limited company) which signifies that he is unable to pay his debts. As a result of bankruptcy, bankruptcy cannot trade or act as a company director with ultimate sanction you would think that there would be no way of obtaining a mortgage however this is not the case and we have access to lenders who will consider applicants from former bankrupts .