Interest rate will it drop on bad credit morgages like kenstigton

Strizy123

After covid 19 will the rate drop i have to go with a company like kengsington cause i have 2 satisfied ccjs as i know there rate is high will it drop after the lockdown

[Deleted User]

Generally speaking, it's too hard to say without a crystal ball! 

But I've seen on another thread you've had an offer accepted, so presumably you mean immediately after lockdown? As you must need to get going with that ASAP.

In that case, I highly doubt it in the immediate days/weeks - lenders will be dealing with pipeline cases (e.g. people that should've had a val in late March/early April but haven't been able to because of lockdown and didn't qualify for Desktop/Automated valuations since) and also any issues that come out of that (e.g. down-valuations).

If you're talking about months - possibly, possibly not - will depend on wider economic situation, house price stability/employment prospects etc. as well as each lenders pricing/performance models.

ACG

I doubt it because I dont think the lenders in that part of the market have increased them since this hit. 

Thrugelmir

Rates are set on a number of factors including obviously interest rates, however more importantly risk. With a poor economic outlook interest rates and underwriting criteria may well harden not soften. The consequences of the lock down are likely to remain with us for some considerable time. 

[Deleted User]

Those lenders that deal with higher risk case will have no interest in doing mortgages at bargain basement prices.   Most of the lenders in that space have withdrawn completely at the moment so when things start up again its not exactly going to be a competitive market to drive rates down.    
I would be surprised if the adverse lenders didnt increase rates until data about unemployment and mortgage arrears linked to covid become clearer.   They want to lend money but they also want to lend money at a rate that captures the overall risk of the case (and not just you as a person,  they will also be factoring in all their other clients going in to arrears as they need to recoup that money somewhere)