Many HIV people are in the process of turning their finances around.

Perhaps your finances are recovering from a period where you haven’t worked, and have been on benefits. Maybe you’ve damaged your credit record or, if you’re self employed, you don’t have a full set of accounts.

Arrears & Defaults

If you've only missed a few payments or made them late, lenders are likely to overlook this especially if you have a good explanation. They will normally offer their standard interest rates and range of products.

However, once three payments have been missed a lender may issue a default notice. If you ignore these notices you could be summoned to the County Court, acquiring judgements. These circumstances will make obtaining credit more difficult & lenders will need some more encouragement.

County Court Judgements

If the CCJ is relatively small and fully repaid there are a few high street lenders that are prepared to listen. It's just knowing who to ask. If a good explanation can be offered or a drastic improvement in salary can be demonstrated, normal interest rates can be obtained.

If matters were more serious there are specialist lenders that will be able to help. One lender offers a restart mortgage with a reasonable five-year fixed interest rate. They will assist people with up to 3 previous County Court Judgements totalling £3,000 providing these have not been within the last 12 months. They will lend 3 times your salary or 2.5 times joint salary. You would only need 5% of the property value as a deposit.

Bankruptcy

If you've been made bankrupt in the past and are now discharged, there are also specialist lenders who are looking for your business. You won't find these lenders on the high street, as these products are generally only available through brokers. These products do tend to charge higher interest rates but can offer a valuable starting point to repair your rating. They will even consider cases where current arrears and defaults exist. This could help to restructure your monthly budget.

Self-Employed, No Accounts

Many specialist lenders will offer a mortgage to self-employed people if they have less than three year’s accounts. Providing you’ve been self-employed for more than one year and have at least a 15% deposit, they will advance funds. This is called a Self-Certified, Special Status or Non-Status mortgage. A minimum of checks are made in relation to your income and you may be required to sign a declaration regarding your ability to service the mortgage payments. Rates of interest are likely to be slightly higher than a ‘Status’ mortgage.

Secured Loans

If your financial history has deteriorated since you took your original property finance you could consider taking a second mortgage. This would use some of the equity within your home to maybe clear credit and store card arrears or even help you make urgent repairs around the home.

One loan company will lend amounts from £5,000 up to £100,000 and will even consider you if you have current defaults and CCJs. They could assist you out of a tight spot by rescuing your monthly finances. Whatever your circumstances there is hope! Don't sit at home allowing the debts to pile up. Seek counselling or specialist advice. If you're uncertain of the shape of your past credit record you can obtain a full report via Equifax. On telephone number 0870 514 3700.