What’s more, once you’ve found a solution, paying your mortgage on time for a few years should help you ‘repair’ your credit history and move to a standard mortgage at a lower rate.
These are mortgages offered by lenders who are willing to lend to people with poor credit histories. Interest rates and charges for these mortgages tend to be higher because of the perceived risk. However, if you can make your repayments on time, your credit rating will start to improve – and you may be able to switch to a more competitive deal within a few years.
There are certainly things you can do which will have a positive effect on your credit score in the future.