Bad Credit Mortgages on Increase
Written by JDPGlobal | Sunday, 17 July 2005
Borrowers with poor credit ratings or those who are self-employed are being denied mortgages. Typically, people with poor credit or the self-employed are seen as being high risk and would therefore offer a higher potential to fail on repayments. This appears to be changing, according to new trends.
Reports obtained by JDP reveal that mortgages within the "non-standard" market, (i.e. the self-employed etc) is increasing at three times the rate of the regular market. Large mortgage providers seem to be launching many new products for this new expanding market. Estimates state that in 2004 approximately eight million people in the United Kingdom were refused loans due to credit problems, having county court judgements against them or being self employed. In 2004 lending in the more traditional market increased 4.7 per cent, compared to 8.7 percent in the non-standard market.
