Bad credit mortgage - Planning repayments

There are many reasons why people fall into debt or experience bad credit, many of which are nobody's fault but bad luck and timing. But for some people debt is a result of poor money management. If you think you fall into this category but have managed to get a bad credit mortgage, you should think very carefully about how you will repay your monthly bad credit mortgage repayment.

Don't default on bad credit mortgage payments

If you default on your bad credit mortgage payment, you could risk losing your home and your property being repossessed. It could also be disastrous on your credit history - a bad credit mortgage is your chance to get back into financial control, so you really can't afford to mess the opportunity up.

A bad credit mortgage you can afford

Your monthly repayments will be calculated for you by a mortgage advisor based on affordability. You should always be completely honest about your financial situation and not lie to get a higher mortgage because you will have problems making repayments. It's important to work out a budget and be honest with yourself too - if you think you won't stick to a budget, you should take that into account. A bad credit mortgage consultant can help you organise your finances.

Manage your finances

• Keep a spending diary so that you are aware of how much money you are spending - there may be blind spots such as buying a coffee out every day, a magazine or gym subscription, where savings could be made.
• Be aware of all your income, including your salary, pension, or any benefits you receive including child benefit and investment returns. You should add up your monthly income to get a total that you can base your bad credit mortgage on.
• Expenditure - as well as seeing where you could make savings, you should list all the priority expenditure such as utility bills, council tax and debt repayments. From there you can try and see if you can reduce your food costs by shopping more cheaply, or cutting down on entertainment, alcohol, cigarettes or any other non necessities. But be honest, if you think you won't stick to a budget, don't overstretch your bad credit mortgage - keep it affordable

Preparing a budget will help you see what you can afford in terms of bad credit mortgage payments. And if you stick to your repayments regularly you will improve your credit rating over time.

Homebank have qualified mortgage consultants ready to advise you with your mortgage and insurance needs. For informative and insightful bad credit mortgage advice, call us to arrange a no obligation appointment to suit you. Homebank are the 'people's mortgage broker' with over 2900 mortgage products to choose from, including products that are not readily available on the High Street. Homebank's experienced consultants could find the ideal product for you - call Homebank now on free phone 0800 052 3604.