Bad Credit Mortgages
These are mortgages that are aimed at those with some form of impaired credit history. They are often called impaired or adverse credit, sub prime or full status mortgages. Bad credit mortgages are similar to standard mortgages, having discounted, fixed, capped and tracker mortgage rates. There are, however, several key differences to standard mortgages.

• High interest rates: because of increasing competition amongst lenders interest rates are getting ever-closer to the Standard Variable Rates offered to mainstream borrowers, but there is still a slight premium, depending on the particular product and the degree of bad credit that is acceptable to the lender. It is also almost impossible to find discounted deals and introductory offers that are as competitive as those offered to mainstream borrowers.
• Credit scoring: most lenders that service this sector of the market adopt a case-by-case approach rather than an automated credit scoring system.
• Loan amount and deposit: bad-credit lenders are less willing to loan large sums of money and usually they are more demanding in terms of the size of the deposit you are required to contribute to the asking price of your chosen property. Many impaired credit lenders are not willing to advance more than 75% of the property value.
• Early redemption penalties: there can be extremely severe early redemption penalties. These can be more onerous than with mainstream mortgages both in the size of the penalty that will apply and in terms of the length of time for which the penalty period lasts.