When you are a home owner, it’s very important to keep a good clean credit history, as if you end up a high risk borrower with a poor credit history, prime lenders will run a mile from any mortgage application you make to them. Many of these companies advertising guaranteed and no credit check mortgages are just trying to hook people in, get them through a credit check, find out the value of their homes from a third party, and then “cherry pick” the deals that some of their lenders will let through.

 

Since the credit crunch and the recession, there are so many people with negative equity, the borrowers are stuck with the lenders they already have. No lender is willing to refinance a house that is “under water” or has no equity in it. Most prime mortgage lending is now around 75% loan to value, and sometimes less for buy to let, and that’s without any adverse credit history lumped in. The days of fast guaranteed cash from your home has long gone, and subprime mortgages are now few and far between.

Four years ago you didn’t really need to work, successive re financing of your home would give you enough money to live on if you were very smart. Students, unemployed people, and people with very poor credit histories were buying houses easily with very little money down, and very little evidence they could service the loans, but at that time it didn’t matter. Now, if your one of the many people with a poor credit rating, your better off being a tenant of a home with a private land lord and not getting involved with brokers claiming they can offer no credit check mortgages.