Missed repayments ‘could prove costly’
Around 1.5 million borrowers are in danger of falling into the sub-prime category, according to a new report.
Research conducted by consumer research group Mintel found that around nine per cent of the UK's mortgage holders have fallen behind with their monthly repayments or missed another form of credit payment.
These blemishes on their credit records could prove costly as lenders have become more cautious about who they will advance money to in recent months.
Mintel's senior finance analyst Toby Clark warned: "With lenders becoming increasingly cautious, many more mortgage-holders will be offered less than favourable terms when they come to remortgage."
He added that others who lenders regard as falling into non-standard categories, such as those who need a self cert mortgage, would also find it increasingly difficult to obtain competitive credit terms in the coming months because of the newfound caution among lenders.
Responding to the report, Simon Tyler of broker Chase De Vere Mortgage Management told the Times that it is more important than ever to keep up with repayments, as a single mistake can now prevent a borrower having access to the best remortgage deals.
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