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Mortgage Advisor & Director
Bad credit mortgages are available, despite unpredictable market conditions of late, but what is the best way to compare the rates and deals? In this guide, you’ll learn how to get an overview of the entire adverse credit mortgage market, find the best deal for your needs and circumstances, and more.
How to compare adverse credit mortgages
You can compare mortgage rates from across the entire market, including deals from specialist bad credit lenders, for free through Teito. Once you have chosen the mortgage you want, one of our bad credit mortgage specialists will review your requirements.
They will use the information you have provided to round up a list of bespoke deals from across the market based on your needs and credit situation. Finally, your advisor will offer impartial advice about which deal is the best fit for you and help you secure it.
Compare bad credit mortgage rates for FREE
Comparing rates across the market
Although there are high street lenders who offer bad credit mortgages, there are also specialist lenders who are often better equipped to cater for borrowers with adverse.
The table below offers a snapshot of the rates currently available from bad credit mortgage lenders, so you can see how they compare across the market:
|
Mortgage Lender |
Initial Interest Rate |
Product Details |
|
5.74% |
5-year fix, 75% LTV, £1,495 fee, free legals |
|
|
5.74% |
3-year fix, 80% LTV, £999 fee |
|
|
7.95% |
2-year fix, 85% LTV, £1,495 fee |
|
|
5.99% |
5-year fix, 75% LTV, £995 fee |
|
|
5.79% |
5-year fix, 85% LTV, no product fee |
|
|
6.09% |
2-year fix, 65% LTV, no product fee |
The rates above were accurate at the time of writing (December 2024)
The product information shown above is purely for example purposes to give you a rough idea of the deals available from some of the leading bad credit mortgage providers.
All of these lenders have a wide range of products with varying interest rates, and the exact deals you qualify for will be determined by the amount of deposit you have, as well as the age, severity and reason behind your credit problems, among other factors.
Comparing loan-to-value ratios
The table below provides a comparison of the maximum loan-to-value ratios for the UK’s leading bad credit mortgage lenders to give you an idea of how much deposit you will need.
|
Mortgage Lender |
Maximum LTV |
|
Pepper Money |
85% |
|
Kensington |
95% |
|
Bluestone |
75% (95% though Deposit Unlock) |
|
Vida Homeloans |
90% |
|
Precise Mortgages |
85% |
|
Aldermore |
80% |
The loan-to-value ratios quoted above were accurate at the time of writing (December 2024), but the deposit amount you are asked to put down may vary depending on the circumstances surrounding your adverse credit and other factors.
Comparing bad credit buy-to-let mortgage rates
The table below offers an at-a-glance comparison of the latest buy-to-let mortgage rates currently available from a handful of specialist bad credit lenders.
|
Mortgage Lender |
Initial Interest Rate |
Product Details |
|
Kensington |
6.59% |
2-year fix, 70% LTV, no fee |
|
Vida Homeloans |
6.04% |
5-year fix, 75% LTV, 2% fee |
|
Precise Mortgages |
6.24% |
2-year fix, 80% LTV, 2.50% fee |
|
Aldermore |
6.19% |
5-year fix, 75% LTV, 1.50% fee |
The information above was accurate at the time of writing (December 2024) but is subject to change. These lenders offer a wide range of buy-to-let deals, and the exact rate you qualify for may vary based on the LTV ratio and your credit situation.
Do you need a broker to compare poor credit mortgages?
Yes. To carry out a full market comparison you will need the help of a mortgage broker. This is because a number of the UK’s bad credit mortgage lenders - such as Kensington - are intermediary-only, meaning you can only access their products through a broker.
Even the lenders who offer bad credit mortgages directly to the general public often have exclusive rates deals that are only available through a broker, so the only way to get a full, whole-of-market overview is by utilising the services of a mortgage advisor.
At Teito, our mortgage brokers specialise in bad credit and they will do all the legwork for you, searching for the best deal and comparing every alternative.
Why use Teito for your mortgage needs?
You can use our free comparison service to view rates and deals from bad credit mortgage lenders and high street providers alike. We have expert mortgage brokers on hand to help you choose the best deal, based on your need, circumstances and credit situation.
Here are just a few of the reasons to choose Teito:
- You could find a mortgage deal in minutes
- We are five-star rated on leading review websites
- Our brokers specialise in bad credit
- They have access to exclusive rates and deals
Get started here to compare rates and deals today and take advantage of a free, no-obligation chat with a specialist bad credit mortgage broker too.
FAQs
The rates on bad credit mortgages are generally higher than they are for customers with clear credit, but just how much higher they will go is likely to depend on the age, severity and reason for your credit issues, as well as the loan-to-value (LTV) ratio.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.