Bad credit mortgages - HBOS says its time to be cautious

Halifax - owner HBOS has abandoned its target for mortgage market share, signalling that it fears the industry could face a surge in loans defaults. This type of business leads to bad credit mortgages. 

Andy Hornby - “Now is the time to deliver a balance between volume, margin and bad credit risk.”

There are fears that consumers have overstretched themselves and that the housing market could go into decline. Especially bad credit mortgages who still want to borrow will have to pay higher rates. People with bad credit mortgages could be stuck with their existing deals for much longer than they thought.

Higher borrowing costs will inevitably lead to a slowdown in the mortgage market many bad credit mortgages borrowers will struggle to get a competitive deal.