Remortgage With Adverse Credit

Redemption Fees and adverse credit

Redemption penalties are charges imposed on you if you chooses to opt out of a mortgage deal within a certain period of time. These penalties can be as much as 6 months mortgage payments, but are usually 2-3 months.

The period over which the early redemption penalty applies may be for the fixed, discounted or capped period only or may apply for several years afterwards, with penalties reducing as each year passes.

The mortgage market is increasingly competitive. As a result many lenders offer interest rates that are loss leaders to attract buyers and those refinancing. After initially competitive rates, that are fixed, capped or discounted, there follows a further period at the standard mortgage rate which can be a lot higher and very uncompetitive.

Due to the nature of the adverse market, lenders often have redemption fees with adverse credit mortgages. Borrowers should watch out for this, as after an initial period of low payments it is easy to get caught out by the increase and end up in a financial mess.

Easy mortgage and remortgage search tool

Adverse credit mortgages and other specialist mortgages cannot normally be found on the high street. We have set up this easy search tool to help you find the brokers and lenders that can help you attain the finance you need for your home.

Fill out the form and submit to receive a fast quote from one of our qualified partner mortgage brokers. It is fast and simple to do!