Bad Credit Best Buys

Lenders within the 'bad credit' mortgage arena will usually 'pigeon hole' you into a specific product dependant on the level of bad credit information that you have registered against you. These can range from the following:

Near Prime allows a maximum of £1000 in CCJ's (satisfied or not) although some lenders restrict this to a specific number and this is not amount orientated, unlimited defaults, a maximum of 1 months mortgage arrears within the last 12 months, bankruptcy or IVA discharged at least a year ago and even a repossession if at least 2 years ago
Light Adverse allows upto a maximum of £5000 in CCJ's (satisfied or not) although some lenders restrict this to a specific number and this is not amount orientated, unlimited defaults & a maximum of 2 months mortgage arrears within the last 12 months. Each specific lender will have their own rules in relation to discharged bankruptcy and IVA's.
Medium Adverse allows upto a maximum of £7,500 (£10,000 with some schemes) in CCJ's (satisfied or not), unlimited defaults, a maximum of 3 months arrears within the last 12 months. Each specific lender will have their own rules in relation to discharged bankruptcy and IVA's.
Heavy / Unlimited Adverse allows any amount of CCJ's, arrears etc. Typically the rate you pay will be tailored towards the amount of bad credit information that is recorded against you.

The below tables shows the top discounted and fixed rate products available (as at 05/09/05 ) using a 'True Cost Comparison' over a 3 year period. For comparison purposes, we have used a loan amount of £75,000 over 25 years on a capital and interest repayment basis and assumed a property value of at least £100,000.

We recommend using a true cost analysis as this is the sum total (over the 3 year period) of monthly payments, arrangement fees and valuation costs and this enables us to compare different benefits offered by lender's schemes fairly against each other. Generally, most lenders operating in this field will tie you to them for at least a three year period.

Near Prime Deals

Lender	Initial Rate	Variable Rate	APR	True Cost	Fees & Incentives	Early Redemption Charge	Monthly Cost
Amber Home Loans Fixed	4.99% 30/9/08	7.19%	7.1%	£15,640	£670 (£495 can be added) £500 cashback.	4% of loan until 30/9/2008.	£440.90 then £533.24
Amber Home Loans Stepped Discount	4.19% 30/9/06 5.19% 30/9/07 6.19% 30/9/08	7.19%	7.1%	£15,995	£670 (£495 can be added) £500 cashback	4% of loan until 30/9/08.	£406.45 then £448.44 then £491.11 then £534.24

Light Adverse Deals

Lender	Initial Rate	Variable Rate	APR	True Cost	Fees & Incentives	Early Redemption Charge	Monthly Cost
First National (Exclusive) Fixed	4.89% 2 Years	6.49%	6.7%	£16,767	£694 (£449 can be added)	6% of loan in year 1, 5% of loan in year 2, 4% of loan in year 3.	£436.25 then £504.34
Amber Home Loans Stepped Discount	4.94% 30/9/06 5.94% 30/9/07 6.44% 30/9/08	7.44%	7.5%	£16,889	£670 (£495 can be added) £500 cashback	4% of loan until 30/9/08.	£438.70 then £482.37 then £504.28 then £548.07

Medium Adverse Deals

Lender	Initial Rate	Variable Rate	APR	True Cost	Fees & Incentives	Early Redemption Charge	Monthly Cost
Amber Home Loans Stepped Discount	4.94% 30/9/06 5.94% 30/9/07 6.44% 30/9/08	7.44%	7.5%	£16,889	£670 (£495 can be added) £500 cashback	4% of loan until 30/9/08.	£438.70 then £482.37 then £504.28 then £548.07
Amber Home Loans Fixed	5.99% 30/9/08	7.44%	7.6%	£17,232	£670 (£495 can be added) £500 cashback	4% of loan until 30/9/08.	£485.95 then £548.98

Heavy / Unlimited Adverse Deals

Lender	Initial Rate	Variable Rate	APR	True Cost	Fees & Incentives	Early Redemption Charge	Monthly Cost
Platform (Exclusive) Tracker	6.12% 3 Years	7.87%	8%	£17,711	£730 (£495 can be added) £235 cashback	6% of loan within 3 years.	£491.97 then £568.74.
BM Solutions (Exclusive) Fixed	6.2% 2 Years	6.79%	7.2%	£18,184	£868 fee (£599 can be added) £269 refunded	5% of loan in year 1, 4% of loan in year 2.	£496.37 then £522.63

Whilst great care has been taken in compiling these tables, no liability can be accepted by Mosaic Mortgages as all rates and conditions should be checked before finalising any arrangements. Furthermore, these tables do not constitute an offer of advance nor does it in any way bind any particular lender to make an advance. The tables are for illustrative purposes only and this does not constitute as the 'Full advice and Recommendation' service offered by Mosaic Mortgages as specified by the Financial Services Authority.

If you would like to calculate the monthly payment for your specific circumstances then click here to use our interactive mortgage calculator or alternatively:

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The overall cost for comparison is 6.9% APR. The actual rate will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Our charges are usually £495.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Mosaic Mortgages is a trading name of Mosaic Mortgage Management Limited. Mosaic Mortgage Management is regulated by the Financial Services Authority under registration number 300398. Head Office: 2nd Floor, Harrogate House, 33-35 Parliament Street, Harrogate, North Yorkshire, HG1 2AS. Telephone 0845 3456744.