Credit ratings ‘can improve’
Many borrowers searching for a poor credit mortgage could find they are actually eligible for a prime mortgage product, according to a personal finance expert.
The claim came from Katie Tucker of independent mortgage broker John Charcol, who explained that people should not assume that once a blemish appears on their credit record it is immovable.
Homeowners who were able to take out a fixed-rate subprime mortgage when market conditions were better may find they are in a position to obtain a mainstream remortgage deal, she continued.
"Many borrowers don't realise that if they have made their mortgage payments in full and on time for two years … they have often repaired their credit rating," explained Ms Tucker.
The advice may provide some reassurance for people with a chequered credit history who are hoping to remortgage, after a recent study by price comparison website Moneyfacts.co.uk found 63 per cent of subprime mortgage products have been withdrawn from the market since July 2007.
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