Bad Credit Mortgages available on the High Street
Research by L&C Mortgages suggests that individuals with a bad credit history can still access mortgage deals from high street lenders such as Abbey.
Competition between rival mortgage providers has led to bigger mortgage providers offering bad credit mortgages for consumers who previously may not have had access to such mortgage products. Reaching out to individuals who’s circumstances fall outside the previously accepted norms for a mortgage applicant has led to a shift in the product range of mortgage providers from generic products to mortgages covering a range of niche markets such as bad credit mortgages.
The bad credit mortgage market or “sub-prime” sector to give it it’s proper name, is one of the biggest niches in the mortgage industry and has been estimated to be worth approximately £30 billion.
There is concern however, that the increased accessibility of bad credit mortgage products may destabilise some providers as they stretch their resources to cover the sub-prime market in an attempot to increase their own profits. It has already been seen in the US that some lenders have had to write off large losses due to the risks of selling to the sub-prime mortgage market becoming real.
With this knowledge market experts are advising providers not to focus too heavily on bad credit mortgages for the sake of short-term rewards and to look at strategies that will aid long term financial stability.
With a record numbers of CCJ’s and bankruptcies being seen in the UK in the last couple of years, this is something which both mortgage providers and consumers cannot ignore.
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