Bad Credit Mortgages and the Free Money Advice Scheme
As bad credit mortgages, 100% mortgages together with self cert mortgages have become a regular news topic following the financial liquidity crisis sparked by the sub prime crisis in America, this has further fuelled the need for a free money advice scheme according to finance experts.
In fact Consumer Groups have long called for free money advice to be funded from levies placed on finance companies by the Financial Services Authority (FSA).
As a result the treasury asked the financial services firm Aegon to create a UK national money guidance scheme. Aegon’s head man Otto Thorensen recommended people would benefit from a sales free service for all their significant life events that affect their finances, such as starting work or buying a house, getting divorced, preparing for retirement or parenthood.
The difficulties arise from first time buyers now requiring at least a 5 to 10% deposit whilst also facing very strict credit checks from the requisite lenders.
Just a slight blemish on your credit file can now result in you requiring the services of a specialist lender to acquire what is termed a bad credit mortgage or an adverse credit mortgage. This could be for something like a missed payment on your credit card.
In the first instance you could benefit from the free advice from the Citizens Advice Bureau (CAB), but they’re seriously over burdened with work and severely underfunded.
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