fbpx

Whitton House
20 Market Place
Newark
NG24 1EA


Contact us today:
01636 674455

Subprime mortgages: A simple guide

subprime mortgages

If you're looking to learn a little more about the world of subprime mortgages, you've come to the right place! First of all, let's cover the most important question...

What is a subprime mortgage?

A subprime mortgage is a type of mortgage that's available for people with a poor credit history. If someone has had issues with their credit in the past and has a low credit score, then they may struggle to be accepted for most of the standard mortgages on offer on the high street. This is because companies will view them as a greater risk due to their previous credit history.

What is the subprime mortgage crisis?

At one time, subprime mortgage were more widely available, with companies often granting mortgages to people who weren't in a position to make their repayments due to their financial circumstances. This eventually contributed to a global financial crisis and so since then, subprime mortgages have become more regulated.

While it used to be common for people to be granted 100% mortgages (or even more), these days you can't get a subprime mortgage for more than 95% of the value of your home.

UK subprime mortgage rates

As you might expect, subprime mortgages tend to come with higher than average interest rates. However, we've seen an increasing number of companies offering subprime products recently, and this has led to more competitive rates for people with poor credit history.

Ultimately, the rate you're offered will depend on your specific circumstances. The more severe your credit problems, the higher the rate you'll probably be given.

To learn more about the rates available to you, book a free consultation with one of our advisers and we'd be happy to chat about your options.

Are there any alternatives to getting a subprime mortgage?

Absolutely! There are definitely other ways you can go, depending on your personal situation.

Check your credit report

Before you do anything else, it's a good idea to check your credit history for yourself. Find out what issues are there - and make sure that all the details are correct. You may find that there's a simple way to improve your score so that you don't need to apply for a subprime mortgage after all.

Use a guarantor

If you have a family member who would agree to be named as a guarantor, some companies may be prepared to offer more favourable rates for your mortgage. 

Pay a larger deposit

The larger the deposit you pay, the lower the rates you'll generally be offered because the risk is lower to the mortgage lender.

Wait until your credit history improves

Of course, one option is to simply delay your mortgage until your credit history is back on track. Most information stays on your credit report for six years, but other credit issues, such as not being on the electoral roll can be fixed much sooner.

Where's the best place to get a subprime mortgage in the UK?

If you're looking for subprime mortgages, then we'd definitely recommend speaking to a mortgage broker. Here at BB, we have access to subprime mortgages which aren't available on the high street. We also have years of experience and have built a number of useful contacts in the industry.

If you'd like to chat with one of our specialist advisers, you can book your free consultation online.

go back to all blogs

Book a FREE Consultation!

We'd love to chat to you about finding you the perfect mortgage for your needs. Click below to book your free consultation with one of our expert advisers.

Book a Consultation

Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.


Ellen King

BB Mortgages
2019-09-04T15:53:10+01:00

Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.


Miss Knight

BB Mortgages
2016-03-22T17:24:36+00:00

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.

Mr L

Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

BB Mortgages
2016-09-13T12:38:09+01:00
Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

Miss G

Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

BB Mortgages
2016-09-13T12:43:22+01:00
Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

Mr W

Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

BB Mortgages
2016-09-13T12:48:10+01:00
Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

Mr C

Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

BB Mortgages
2016-09-13T12:49:06+01:00
Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.
0
0
BB Mortgages

10 hours ago

BB Mortgages, Newark

Meet Alison;⠀

Alison joined BB Mortgages over five years ago following many years in financial services and estate agency.⠀

Alison enjoys helping clients make their house move to become a reality and has a wonderful knowledge of how lenders work. When not at work, Alison enjoys spending time with her daughter and enjoys dancing and cooking.⠀

Alison would LOVE to talk anything Mortgage-related and would be happy to answer any of your questions, so feel free get in touch today!⠀

Simply visit the link in our bio to find our contact details!
... See MoreSee Less

View on Facebook