If you are looking to get a mortgage through a high street bank or building society then you are going to need a reasonably good credit rating in order to qualify. If you do not fall into this category then you are going to have to consider approaching a different type of lender in order to secure finance, in this case you would need to approach a lender who specialises in bad credit mortgages.
There are many companies that offer mortgages for people with bad credit ratings, so you will not find you are particularly restricted in your choice of lenders. However, you may find that the terms of the mortgages on offer narrow down your choices considerably. This is why you should think carefully before committing to any kind of bad credit finance. There are other options open to you if you have a bit of time and some patience, as you can rebuild your credit rating over the space of about a year, bringing it back up to a level that most high street lenders would find acceptable. This can sometimes be the preferable course of action for many, as opposed to tying yourself into a mortgage that may carry high interest rates and other associated charges.
If taking the time to rebuild your credit score is not an option for you, then you are the perfect candidate for a bad credit mortgage. Lenders that specialise in these types of products will have their own set of criteria which they require you to fulfill, and while these are generally similar to those required by high street lenders, there are of course areas in which they differ. The main area will be your credit rating, which, while it will be taken into consideration, will be looked at in a different way than it would be by a mainstream lender. Other areas that will be taken into consideration will be your employment status, including length of service and stability of job and things such as liquid assets that you have available. The fact that you will be securing your finance against a property means that the lender has a good form of security, but in order to add to this, many lenders will ask for a larger than average deposit. This reduces the liklihood of mortgage repayment defaults as not only do you risk losing your home, but also whatever you have put down on the property too.
Taking the time to research bad credit mortgage lenders can really pay off, as you will be able to compare not only interest rates, but also the other associated costs of arranging finance from a high risk lender. Once you have all the facts, you can then decide which deal is going to work out best for you in the long run, should you decide to proceed.