There are several Mortgage Lenders available for people with bad credit scores. Just because your rating is not doing well does not mean you have to give up. You just need to find the perfect mortgage that could possibly help you finally have a house to own.
The right to buy scheme introduced by the British government in the 1980s is one of the best schemes available. This allows people who are currently renting a house to finally own the said property at a discounted price. Although there have been several changes to the scheme introduced over the years, it remains one of the most beneficial housing schemes currently available.
One of the changes is the number of years required before you can avail of the scheme. Previously, you had to be a tenant for 5 years before you could avail of it, but now, you only need 3 years. The maximum allowable discount has also been increased. This amount also keeps on increasing. For people residing in London, the amount is even higher.
Another new criterion, implemented in 2017, allows tenants of housing associations to purchase their homes. There were at least 3,000 people who were eligible for the scheme. Given all these changes, it is in your best interest to take a closer look at this scheme and sign up immediately.
What if you have a really bad credit score?
People end up having bad credit scores for several reasons. There are those who have missed paying their debts to a point that they have accumulated tons of penalties. Some others took out huge loans that remain unpaid. It is easy to get the document that shows your credit rating. Just don’t expect it to look good especially if you have incurred several unpaid debts in the past.
Just remember that having a bad credit score is not the end. You can still get a loan and there are several schemes available for you. The right to buy mortgage could be the perfect option for you as it extends even to people with bad credit scores. Be prepared to have your application rejected, but there is no harm in trying.
Don’t mess it up
If your application for the right to buy mortgage has been accepted, you should make the most of it. Be responsible in paying. Remember that the property can still be taken away from you if you are unable to maintain the mortgage payments. You should also remember that not everyone is lucky enough to have been given this opportunity, so you should do everything possible to finish paying the loan.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.