No credit check mortgages – the end to credit discrimination?

If you have suffered with a few issues that have resulted in you having a lot of bad credit, maybe through illness or injury where you have been unable to work, or because a partner has left you will a lot of bills you can’t pay, a credit check maybe a problem for you.
This is why some lenders have started doing no credit check mortgage loans. When there is enough equity in your home for the risk to the lender being minimal, even if the lender has to re possess they are not likely to loose. This is why some lenders can do no credit check mortgages. OK, you will still need to prove exactly who you are and what your current address is, and your solicitor will check you are not bankrupt, but these lending products still exist.

Usually you need something like a 30% down payment to qualify for such a mortgage, for a purchase or a remortgage.

If you want to carry on owning your own home with the help of a lender, you can keep your position in the property market even with a lot of bad credit in the form of ccj’s defaults and missed payments on credit cards, catalogues, mobile phone bills and previous mortgages. Your family home of investment property could be your hedge against inflation as cash in the bank could be dangerous if inflation gets very high. If you need more money out of your house sometime in the term of the mortgage you could always consider a secured loan, to soak up some of the equity. This second charge lending can be more expensive than 1st charge mortgage lending.