When I first started on this road 18 months ago, 2 kids in tow after losing my ex wife
I had always believed I would have that first home for me and the girls, shamefully actions of a complete idiot who took my wife from me, never did I ever believe that it would be on my own or without my wife
When I started to look for a home after the madness I thought that with a half decent credit rating it wouldn't be that much of an issue, how wrong could I be, we were in the middle of the recession all down to the mortgage madness that the american banks allowed to happen
Well there was a couple of different avenues I could go down, even with 20% deposit a lot of the banks wouldn't touch me
So my accountant came up with the following choices, private loan due to my good credit rating I would be able to get a large personal loan that would be able to get me 150k towards it the next choice was a bad credit mortgage This one is a mortgage with a higher rate of interest but allows me all the protections of a normal loan, just with a higher interest rate and although as the name suggests is not just for those with bad credit , the last choice Alternate lending methods these generally consisted of unsecured loans based with a 40%+ interest rate based on a large payday loan with alternate other lending methods
With the girls the only possible choice I could go with is the one that afforded me the most protection for my daughters so that ended up as the bad credit mortgage now as bad as it sounds these are just a product name I got the exact same protections and the same assumed happiness as I would have with a standard mortgage.
When it come to it, I paid 13% for the first 5 years on the mortgage and after significant showing that I was able to cover the mortgage cost this dropped down to 3%
During the transition I spent a lot of times in hotels in York and found this is one of the largest costs I incured
It’s important to be able to access a good deal on a mortgage, whatever your situation. Of course, this can be difficult for people who have poor credit histories. If you have even minor issues with your credit history, or if you have yet to establish a good record of credit, you may encounter difficulties when attempting to get a mortgage. However, you can still potentially do business with specialist subprime lenders.
Which is a standard rate for those that have got a mortgage in the last 10 years
This put some pressure on us as a family monetary wise but after all this time me and the girls are happier than we have ever been
The other 2 options would of adversely affected my credit so bad that it would of done me more harm than good when it comes to dealing with credit options in the future