Less choice in sub-prime market
The number of mortgage products available to people with a chequered credit history has dropped by 63 per cent in the past four months, it was claimed today.
In the wake of the credit crunch a number of mainstream lenders have withdrawn their poor credit mortgage offerings as part of moves to reduce their exposure to bad debt.
However, the full extent of the change in the market was not apparent until personal finance website Moneyfacts.co.uk published statistics showing exactly how many products have disappeared.
Julia Harris, an analyst for the website, warned that the problems faced by sub-prime borrowers are not restricted to a reduction in mortgage choice.
"Not only have providers withdrawn significant amounts of products, rates have been hiked and criteria significantly tightened," explained Ms Harris.
She added that borrowers who currently have a sub-prime fixed-rate mortgage could experience real difficulties remortgaging at the end of the fixed-rate period.
Moneyfacts.co.uk recently revealed that the number of lenders offering unsecured personal loans fell by ten per cent during November.
You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.