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Spanish Adverse Credit Mortgages

If, unfortunately, you have a less than perfect credit history, which may have occurred for various reasons this is not the end of your idea of investing in Spain or buying your dream holiday home. Here we give you an overview of the options open to you.

What is an adverse credit mortgage?

An adverse credit mortgage may be called by several names which are listed below. They all refer to the same basic type of mortgage, i.e. one where the applicant has a history of having problems with previous credit agreements.

  • Non status mortgage.
  • Bad credit mortgage.
  • Sub prime mortgage.
  • Non standard mortgage.
  • Poor credit mortgage.
  • Credit impaired mortgage.

An adverse credit history could include the following:

  • County Court Judgements (CCJ's).
  • Mortgage or rental arrears in the last 3 years.
  • Recently Self employed - Although you can apply for a self certificate mortgage.
  • Bankruptcy.
  • I.V.A .
  • Trust deeds.
  • Decrees (Scotland).

Sometimes you will find that mortgage lenders may also turn you down if you have changed address many times or if you are an entrepreneur with a new business that is without 3 years worth of audited accounts. If you are self employed you may have to apply for a mortgage v a sub prime lenders but may also apply for self-certificate mortgages, meaning you declare your own earnings without having a set guaranteed salary or possibly the proof normally required by a lender.

There have been recent estimations that one in four British people would not qualify for a standard mortgage from a traditional high street bank or buiding society. This means they require sub prime lenders in order to acquire a mortgage loan. As with any product or service, if there is a demand then the supply will follow, and as the demand for adverse credit mortgages has risen, so too has the number of lenders catering for this need. There are now numerous lenders throughout the UK and Spain who are ready to consider application for an adverse credit mortgage in Spain.

View a full list of items you will need to complete your Spanish mortgage by viewing our Spanish Mortgage Checklist.