If you have a poor credit record, have missed payments on a loan or even had a County Court Judgement against you, you’d be forgiven for thinking you’ve no chance of getting a mortgage.

But you just might be wrong…

Variously known as bad credit mortgages, sub-prime or adverse credit mortgages, they are simply mortgages that lenders will offer to people who might have been refused elsewhere, because of their credit score.

For a while interest rates on these loans were high, because of the higher risk involved to the lender and continuing nervousness following the crash of 2008.

But as confidence has returned to the market, rates have come down and are now pretty competitive, especially if you have a decent deposit.

Imagine, for example, you have missed a few credit card payments and have got a black mark against your credit score. Many lenders would refuse you a mortgage, but increasingly people are being able to borrow again. Which is great news for them and the housing market.

Rates vary according to the extent of your poor credit rating but taking out a bad credit mortgage is ultimately a great way to help repair your credit score.

Keep up the payments on this loan and once your credit score looks better you can get back into the market for a better rate from a different lender again.

As with all products like this, they can be complex and it’s worth getting advice on your own circumstances before taking out a bad credit mortgage.