Fixed rate Mortgage Bad Credit
The best fixed rate mortgages available to you will depend on how much you want to borrow, your credit rating, how long you want to spend paying it back and how much of a deposit you have. Advantages of fixed rate mortgages include:
- Knowing exactly how much you will be paying in interest, making it easier to budget and plan ahead
- Protection from rises in interest rates from the Bank of England
If you're looking for a fixed rate mortgage, bad credit will mean you have to pay higher rates, and you might find it difficult to secure an affordable deal, but call to speak to a mortgage specialist and find out what offers are available for customers with a bad credit history.
If you have a bad credit rating you may find it slightly more difficult to track down a mortgage lender who is willing to take the risk in lending to you. However, there are a number of lenders out there who may offer you a suitable mortgage deal in the right circumstances. A Fixed rate mortgage may be useful if you are looking for a mortgage with a good deal if security, as they make budgeting for your repayments as easy as possible.
Even if you do have a bad credit rating, there may be lenders who are willing to offer incentives as part of their fixed rate mortgage deals. Some lenders do not require arrangement fees and provide incentives such as:
- Free valuations
- Free legal fees
- Bad credit remortgage deals
If you have a bad credit rating and are looking for a fixed rate mortgage deal, it is important to choose the right agreement, as it may help you improve your credit rating. When searching for a suitable mortgage, it is important to remember that although your interest rate will remain the same e.g. for 2 years, when the set term ends your lender will switch the interest rate to their standard variable rate, which is often considerably higher than the rate you were paying. Be ready to switch as soon as possible.
There are also different types of fixed rate mortgages available to those with bad credit and it is always worth comparing mortgage deals from different providers to find an offer that is most suited to you. Take a look at our mortgage comparison tables for a range of fixed rate mortgage deals.
Require mortgage advice? You can call our mortgage team on:
0117 332 6063
Monday to Friday 8.30am to 7pm