Why a bad credit mortgage application could help if you've been rejected by a big bank
Have you been turned down by a big bank in your search for a home loan? It can be disheartening, but it doesn't mean the candle light that is your home-ownership dream has been snuffed out. With specialist lenders like Red Rock, a bad credit score doesn't equal ineligibility for a loan. In fact, if you've rejected by a large bank, a bad credit home loan could be just the product for you.
1. Bad credit isn't the end of the story
When dealing with banks and major lenders, a bad credit score often means the end of the conversation. They mightn't be willing to listen to the reasons why your credit score is in an unhealthy state and may just assume you're too risky a prospect to grant a loan to.
At Red Rock, we see things differently. A bad credit score is not the end of the story - there are many reasons why it might be in bad shape, not all of them indicative of someone that wouldn't be able to repay a loan. A job loss, a divorce, an urgent medical problem - the possibilities are endless. None of these mean the person they've happened to are necessarily unworthy of credit.
2. You have the chance to improve your credit rating
When your credit score has gone into unhealthy territory, it can be hard to bring it back. If having a good credit score is reliant on paying your debts and demonstrating your credit-worthiness, being unable to secure loans means you don't have the chance to improve your score by demonstrating your ability to pay back loans.
3. Terms that work for your situation
In a big city, saving up for a 30 per cent deposit is almost an impossibility. Sky-high house prices mean you really do need a loan just to get a foot in the door. Red Rock's bad credit home loans can lend up to 95 per cent of the purchased property's value. While interest rates will be higher, it can be a lifeline for those with insufficient savings for a more sizable deposit.
Have you been rejected by a bank or lending institution in the recent past due to bad credit? Don't let that make you think your home-ownership dreams are now out of reach. Get in touch with the team at Red Rock Mortgages to hear more about how we can help you secure the financing you deserve.