credit impaired

Don't let past credit problems stop you from getting into your own home.

Many people, through no fault of their own, have gone through rough patches in their lives which have caused them to have a less than perfect credit history. Until a few years ago, no lender would lend to people with past credit problems as they were deemed credit impaired.

Being deemed 'credit impaired' usually means someone currently has or has had credit problems in the past.

These credit problems can be in the form of any of the following:

$ Defaults (paid or unpaid)

$ Judgments

$ Writs or summons

$ Mortgage arrears

$ Bankruptcy history

Traditionally, this has meant not meeting lenders traditional criteria.

Well the news is not all bad...........

With today's wide range of home loans and lenders , even people considered 'credit impaired' can now apply for a home loan .

barrett lending solutions are able to get up to 80% finance for clients with past credit problems. We have a high success rate for clients with bad credit history.

We are normally able to obtain a pre-approval within 24 hours.

These loans, known as non-conforming home loans , are specifically designed to suit people who are not just credit impaired, but also are available for people who are:

$ self employed

$ no longer working full-time and/or retirees

$ contractors

$ seasonal workers

So how do they work?

Non-conforming home loans work like most other loans. Borrowers can choose from a range of loan types including variable , fixed and split rate loans and popular features such as line of credit , redraw and offset .

Because credit impaired and non-conforming borrowers are regarded as higher risk, most lenders charge a slightly higher interest rate and/or a higher fee structure than for traditional loans. Non-conforming loans can also be less flexible.

Although the interest rates and fees tend to be higher, the non-conforming lenders usually do not 'insure' the loans. Therefore lenders mortgage insurance is not applicable.

These loans are an excellent way to enable borrowers to 'get back on their feet' in terms of re-establishing their credit file thus enabling the subsequent ability to borrow from traditional lenders at lower rates.

Once again, due to competition within the industry, the interest rate loading on these loans is reducing to the point that some non-confirming lenders can offer better rates than the 'usual' lenders, although the fees still tend to be higher.

The main thing to watch out with these types of loans is that the exit fees tend to quite large if the loan is paid out within the first 3 or 4 years.

At barrett lending solutions we can access these non-conforming loans from many specialist non-conforming lenders and mortgage managers.

Again it's about coming up with a solution for your specific circumstances - and that is what we do.

We "make it happen".