Over the last decade we have seen a substantial increase in Subprime mortgage lending and this type of lending now makes up a significant portion of the overall mortgage market. Subprime mortgage loans are mortgages that have been developed by specialist lenders to address the ever growing numbers of people who for whatever reason have been denied prime or standard residential mortgages by traditional high street lenders. The subprime mortgage rate varies from lender to lender so it is essential to understand the reason why rates may differ and how to ensure that you find the best subprime mortgage with the lowest rate possible with criteria that suits your individual situation.
Researching Subprime Mortgage Rates
Firstly you will need to do your own research of the subprime mortgage rates on offer. You will then have a good idea of the different rates on the market and which of the products and schemes may be best suited to you. One of the best places to do this is the internet where by using the search engines you will be able to bring up lists of subprime mortgage lenders from which you can explore their web sites and gather all the rate and product information together ready to do some comparisons. You can also make use of the national newspapers most of which have a personal finance section holding further details of lenders and their offers. The easiest route which also ensures the best results is through contacting a specialist subprime mortgage broker, who will not only have a wide knowledge of the market but will also be in a position to offer advice on which mortgage products would be best for you and which subprime mortgage rate is realistic for your individual circumstances.
Specialist Subprime Lender Rates
If you having difficulties sourcing a mortgage loan from traditional mortgage lenders the best way forward is likely to be applying for a mortgage with one of the specialist subprime mortgage lenders. Specialist subprime mortgage lenders are in a position to offer you lower subprime mortgage rates and lower fees. Regardless of your credit history you will find that the specialist subprime mortgage lenders will offer you a better subprime mortgage rate. Their subprime mortgage rates will not be vastly different to a prime or standard residential mortgage loan as it will have regular monthly re-payments, early repayment restrictions and a deposit will be necessary.
Subprime Mortgage Refinancing Option
One of the advantages that specialist subprime mortgage lenders offer over the normal high street lenders involves refinancing. After a period of around three years, providing that you have shown yourself committed to making regular payments on time you may find that the lender will automatically offer refinancing so you can reduce your mortgage rate and potentially tap into any equity in your home meaning you can possibly pay off any other debts by amalgamating them into a low interest single monthly payment. This is likely to do wonders for your credit rating and may well enable the repair your credit history.
