Adverse Remortgage

Adverse remortgage is a euphemism for applying for a remortgage when the applicants have had adverse credit difficulties.

Mortgage companies credit score applicants according to their credit file.

This is a system used by companies or individuals lending money to individuals to attempt to validate the persons financial standing and ability to repay a debt. It uses a score card to assess all the answers given on a finance application which then provides a total score for the applicant based upon their individual circumstances. The credit file can be checked using either Experian or Equifax and for the payment of a few pounds, you can find out which lender or company been looking at your file. If it's been shown that there have been defaults when paying credit cards or other loans etc, then the prospective lender may decline your application or may choose to accept it at a higher rate. You'll appreciate that there are 'degrees' of adverse credit and bad debt. Generally when someone gets into financial difficulty often at times of

divorce / separation, a death in the family or extended illness and when the credit holder has enjoyed a previously unblemished record, this situation may be described as 'adverse'. The credit holder should at all times discuss and negotiate with the lender(s) what the situation is and the very fact that there is dialogue essentially saves the day for the credit holder. Doing an 'ostrich' and

putting your head in the sand won't help although this can be a natural inclination.

Dealing positively with any arrears or money owed over and above the contracted amounts is essential. Just imagine all those hundreds of years ago where they put defaulters in prison until they could pay off their debts. How could they ever! Although it was generally the families that would pay up and that's still a solution today. If people get stuck in a credit trap and need help dealing with their debts the simplest solution is to approach their local Citizens Advice Bureau. There's free advice and practical help.

Whilst this section is about remortgaging when you have or have had credit difficulties, there are companies out there that will be able to help you - if at a price..

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