Mortgages a struggle for those with damaged credit
Whilst people that have had bad credit ratings in the past have found that there is far less choice when it comes to getting finance such as mortgages, there is little doubt that since the onset of the global credit crunch things have got far worse for this group.
It has recently been claimed that these days people that have a poor credit rating could really struggle for find a mortgage at all, even from the lenders that supposedly specialise in finding mortgages for those with damaged credit.
One official from the Association of Mortgage Intermediaries said that in the current climate, and given the problems that have stemmed from the US sub-prime market, there is very little chance that brokers and lenders will start to increase their levels of sub-prime lending in the near future, leaving those with damaged credit in a very difficult position. Sub-prime mortgages are those that are designed for people with bad credit and no proof of income amongst other things.
The number of sub-prime mortgages available has plummeted in a matter of weeks according to industry reports. One industry group recently reported that at the end of March of this year there were just over two hundred sub-prime mortgage products available on the market for those with damaged credit.
However, the company claims that just over a week later, on 8th April this year, there were just eight sub-prime mortgage products available.
Mr Sinclaire from the AMI outlined how bad things were for those with damaged credit who were looking to get mortgage finance. He said: “People with bad credit histories are in a difficult position at the moment in that if they can’t obtain further credit then the only places they can end up are in things like debt management.”
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