FAQs

• I have a bad credit record. Can I still get a mortgage or loan?
• Credit files
• Credit scoring
• Your rights
• Secured or Unsecured loans?
• Withdrawing from an Agreement
• Credit brokers' fees
• Settling up early
• Getting out of debt
• Six Point Action Plan
• Why should I use the Correct Mortgages?
• Is the information I submit confidential?


I have a bad credit record. Can I still get a mortgage or loan?
In general -Yes. The terms in which a mortgage is offered is varied in accordance with a risk assessment of you.

Credit checking companies are used by the majority of lenders and house relevant information such as CCJ's, defaulted payments etc.

These records are usually searched every time you apply for a line of credit and your history affects the terms you re offered.

If you find yourself in this situation, DON'T PANIC! Correct Mortgages can help you. Click here to find out how.

By and large, traditional high street bank usually assist anyone in a situation as this. However, there are other lending institutions that base their decision on you circumstances and not your credit history. This is where correct mortgages can help you. Click on the link above and find out how.

Credit files
To get a copy of your credit record, you can apply to one of the two main agencies either on-line

Equifax - You can get a copy of your credit record on-line

Experian - You can get a copy of your credit record on-line

Or by post, You'll need to give your full name (and maiden name if appropriate),date of birth, current address, including house number, street name, district, post town and postcode and any addresses lived at during the last 6 years.

Enclose a cheque or Postal Order payable to Equifax for the statutory fee of £2.00 and send your letter to: Credit File Advice Centre PO Box 1140 Bradford BD1 5US

Or

Enclose a cheque or Postal Order payable to Experian for the statutory fee of £2.00 and send your letter to Experian Consumer Help Service PO Box 8000 Nottingham NG1 5GX

Credit scoring
A number of lenders often use credit scoring systems that assign points to the information you supply, such as age, occupation etc. The points are calculated and ultimately produce a credit rating score. This allows the lender ascertain your risk assessment.

Your rights
If find yourself being refused credit you have the right:

To know the name and address of the credit reference agency that the lender contacted for the information held about you

To see any information held about you by that agency

To correct any inaccurate information. The Data Protection Registrar may also be able to intervene in a dispute with a credit agency.

Secured or Unsecured loans?
Secured Loan

A secured loan is a loan secured on your property by the lender. This basically means that the lender is reducing the risk of losing any money and so can offer a secured loan at a lower APR (Annual Percentage Rate) than an unsecured loan. A Secured Loan is also in some instances easier to acquire as adverse credit history such as arrears or county court judgments can be discounted to an extent.

In the case of a good credit history, many lenders will offer secured loans in excess of the available equity in the property. In all cases with secured loans you should be aware that your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

Unsecured loan

An unsecured loan doesn't carry the risks of a secured loan. However, the cost of repayment can be higher. If you don't repay it, the lender can't take your house off you. As a result, it's often difficult to get an unsecured loan if you've had problems in the past with late or missed repayments on a loan or credit card.

Withdrawing from an Agreement
You can withdraw from any agreement before it has been signed by both you and the lender.

This means acting quickly. If you have already signed, you will have to notify the lender and advise them that you have changed your mind before they sign. It's probably best to phone, fax or e-mail and then confirm by post.

The effects of withdrawing are the same as cancelling.

This is particularly important with agreements secured on your home where the lender must send you an advance copy of the agreement at least seven days before sending the actual agreement to be signed.

The lender must not contact you during this consideration period to give you time to think about the deal (but you can contact them).

Credit brokers' fees
If you use a broker to get a loan, including a mortgage or a loan secured on your home, you will probably be charged a fee for the service.

Make sure you know what this will be before you commit yourself. If, however, you do not enter into a loan agreement within six months of being introduced to a possible lender, the broker can only charge a fee or commission of £3 and if you have already paid more you can recover the excess.

Similarly, other fees, such as a survey fee paid to the credit broker in connection with a loan that you do not eventually take up, are also refundable if you are borrowing £25,000 or less.

Settling up early
You may find part way through repaying your loan, you are in a position to have enough money to pay off the entire amount owed in one go.

As a result, you could be eligible to a rebate of some of the charges you would have paid over the remaining duration of the loan. It all depends on the type of agreement you have with the lender.

It can sometimes cost more than you may have anticipated to pay off your loan sooner and in a few cases you could still have to pay more than the original amount borrowed. Despite this, settling early will cost less than carrying on with the repayments plus interest for the full term of the loan.

Getting out of debt
That old familiar feeling of knots in your stomach when the post arrives, the phone rings, and there's a knock at door. The sooner you face any debt problem the easier it will be to resolve.

Ignoring it and wishing it will go away doesn't work. If you do, you could end up in court, lose the goods you've bought or find it difficult to get credit in future. You might even lose your home. Even if you aren't up to your neck in debt, it's surprising and frightening how quickly it can build up and how long it takes to pay back.

Look at our SPAP (Six Point Action Plan) below and start helping yourself.

Six Point Action Plan
List ALL your debts. Calculate when payments are due. Identify the priority debts.

Money coming in? Work out how much money you have coming in. Are you claiming all the benefits you are entitled to? Are you paying too much tax?

What are your outgoings? List your essential and less essential spending. Compare it with your incomings. What do you have left to offer to creditors?

Not enough left? Can cut down your spending? Could earn extra money?

Talk to your creditors. Send them a financial statement showing your income and outgoings. Explain your offer to pay off your debt.

If you find this daunting? Don't Worry. We can help you with this.

Why should I use the Correct Mortgages?
Correct Mortgages is an experienced financial broker with over 5 year's experience. We have helped many

We are completely independent of any finance, credit or loan company. We submit the details you supply to us to some of the UK's leading lenders. This means that you get the best deal on interest rates and conditions as all these companies are bidding for your business.

It doesn't matter if you have an A1 credit rating, CCJ's, Family Tax credit, Living Disability Allowance, we can help you!

Is the information I submit confidential?
Yes – the Correct Mortgages site is registered under the UK Data Protection and Consumer Credit Acts. Your application is submitted only to lenders holding a current UK Consumer Credit Licence from the Office of Fair Trading. No information is passed to any third party marketing or mailing companies.