2. Choose a longer rather than a shorter repayment term. Bad credit mortgages are offered over any term up to 25 or 30 years. If you can get 20 years then go for it. You will pay more in interest if you borrow over 20 years rather than 10 or 15, but your repayments will be a good bit less and more affordable. It is better to comfortably pay over 20 years than to struggle for about 8, default and then lose your home. OK, you pay more interest, but you still have your home, and the repayments will seem less as the years go by and you earn more money.

3. Arrange to pay your mortgage by standing order or direct debit. Then ask the mortgage company to date the payments to be the same as your pay day. Whether you are paid weekly or monthly, it doesn’t matter. Your repayments will be monthly so arrange them for as near as possible to your pay day. If you always get paid on the 1st of the month, for example, arrange the direct debit to be paid on that day. If it is the last day, then make them for the 1st of every month, since regular payments are paid on a specific date each month.

By doing that your account will always have money in when the mortgage is due. A lot of defaulters pay their mortgage towards the end of the month, a few days before their monthly salary is paid into their bank account. By then there is nothing left in the account, and the payment defaults. It is sometimes very easy to either spend too much or to forget other regular payments, so arrange your mortgage be paid ASAP after your salary or wages are lodged in your account so that this cannot happen.

Bad credit mortgages are to be regarded as your ‘Last Chance Saloon’ and you must keep up the payments or you will be taken to court, and never get credit again. However, if you treat them with care, they will work for you, not only by allowing you to purchase your home, but also by helping to repair your credit record.

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