Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Stock Market Due for 9-10% Pull Back? - 25th April 19
Dow Transportation Stocks Sector Is Testing Resistance - 25th April 19
INSOMNIA i64 UK Best Games Festival Vlog of What it's Like to Attend - 2019 - 25th April 19
In Just 45 Mins., Learn to Spot New Opportunities in ANY Market for FREE! - 25th April 19
If This Pattern Holds True, the US Economy Could Face the Worst Stagnation in History - 25th April 19
8 Reasons Why Investment in Education Always Pays Off - 25th April 19
Want To Earn A Safe 5% In Fixed Income? Buy Preferred Stocks - 24th April 19
Can Gold Price Rise Without a Rate Cut?  - 24th April 19
Silver’s Next Big Move - 24th April 19
How Can a College Student Invest Wisely? - 24th April 19
Prepare For Unknown Stock Market Price Action As New Highs Are Reached - 23rd April 19
Silver Plays a Small but Vital Role in Every Portfolio - 23rd April 19
Forecasting 2020s : Two Recessions, Higher Taxes, and Japan-Like Flat Markets - 23rd April 19
Gold and Silver Give Traders Another Buying Opportunity - 23rd April 19
Stock Market Pause Should Extend - 21st April 19
Why Gold Has Been the Second Best Asset Class for the Last 20 Years - 21st April 19
Could Taxing the Rich Solve Income Inequality? - 21st April 19
Stock Market Euphoria Stunts Gold - 20th April 19
Is Political Partisanship Killing America? - 20th April 19
Trump - They Were All Lying - 20th April 19
The Global Economy Looks Disturbingly Like Japan Before Its “Lost Decade” - 19th April 19
Growing Bird of Paradise Strelitzia Plants, Pruning and Flower Guide Over 4 Years - 19th April 19
S&P 500’s Downward Reversal or Just Profit-Taking Action? - 18th April 19
US Stock Markets Setting Up For Increased Volatility - 18th April 19
Intel Corporation (INTC) Bullish Structure Favors More Upside - 18th April 19
Low New Zealand Inflation Rate Increases Chance of a Rate Cut - 18th April 19

Market Oracle FREE Newsletter

Top 10 AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Rise in Number of UK Credit Impaired Mortgage Deals

Housing-Market / Mortgages Aug 28, 2018 - 07:33 PM GMT

By: MoneyFacts

Housing-Market

The number of residential mortgages available has been increasing steadily over the past year as lenders look to diversify their range of products to attract different types of customers. As a result, the latest figures from Moneyfacts.co.uk show that the number of credit-impaired mortgage deals on the market has risen by 118 in the last six months.



Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, said:

“Credit repair mortgages represent a small proportion of the mortgage market – just 17%. However, in the past six months, the number of deals has increased by 118 to stand at 843 in August. This is good news for borrowers who have struggled with a poor credit history in the past and had difficulty in obtaining a mortgage.

“With fierce competition in the mainstream market, providers have opted to branch out into more niche areas, including adverse credit mortgages. This extra attention has resulted in an increase in the number of deals available to this type of borrower.

“Despite this boost in the number of deals however, the two-year fixed rate for those with a poor credit history has risen a whopping 0.17% in the past six months to stand at 4.52%. Not only have rates risen dramatically but, as to be expected, the prices offered by these deals are far higher than standard options on the market.

“For example, the average two-year fixed rate mortgage stands at 2.54%, a massive 1.98% lower than the credit-impaired average. While the difference may appear stark, the higher prices do reflect the extra risk that is involved to the provider.

“Although credit-impaired mortgages are slightly riskier, it is by no means a return to the lending style of before the financial crisis. Back in August 2007, there were 5,106 credit-impaired deals, which accounted for a whopping 55% of the residential mortgage market. At the time lending principles were significantly looser than today. Lenders are now required to delve a lot deeper into a borrower’s financial history to ensure they are able to afford the deal.

“It would be wise for any borrower who is unsure about their credit history to check their file online, amending any errors. If they feel their score is low, trying to improve this will boost a borrower’s chances of acceptance.

“These deals offer borrowers who have experienced minor issues in the past a lifeline to get back on track once more. However, any borrower considering this as an option should first seek advice from a financial adviser to ensure it is the right choice for them.”

moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, there is no commercial influence on the way moneyfacts.co.uk ranks products, showing consumers a true picture of the best products based on the criteria they select. The site also provides informative guides and covers the latest consumer finance news, as well as offering a weekly newsletter.

MoneyFacts Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules