We are living in an age when UK personal debt is at record levels and it is therefore inevitable that bad debt problems are on the increase. But, those who are experiencing debt problems now or have had difficulties in the past can take comfort from the fact that it is still possible to get credit even with a damaged credit record.

This is especially good news for homeowners who need to pay off other unsecured debt by utilising the equity in their property. However itâ ™s not all easy going as that credit will come at a price. Those with bad credit ratings successful in getting a loan will find that they are inevitably paying higher interest rates than those with excellent credit records. So, although a short-term problem may be solved it could create a bigger headache in the future as payments will be higher, and itâ ™s normally the people that can least afford it that find themselves paying the higher rates. However, many people in that situation feel they have little alternative and even a higher-priced loan repaid over a fixed period is cheaper in the long run than maintaining expensive credit card debt over an undetermined period.

When it comes to finding a bad credit mortgage it is possible to trawl through all the mortgage lenders on the internet or alternatively visit all the high street financial institutions in an attempt to find one that will agree a loan. But, apart from being extremely time-consuming, in most cases it will be very frustrating and ultimately unfruitful. Most of the companies that deal in bad credit mortgages are specialist lenders who do not operate on the high street, but mainly through specialist financial brokers. They are invariably experts on which lenders will be most suitable for each applicantâ ™s individual circumstances and therefore able to target borrowerâ ™s applications more effectively.