Sub-prime mortgage advice in demand

01/12/2009

More consumers are enquiring about "sub-prime" mortgages, figures from financial advisers Unbiased.co.uk have shown.

The October 2009 data indicated that seven per cent of requests for whole of market mortgage advice concerned the loans - which are lent to customers with less-than-perfect credit records, often at higher than average rates.

In September, this proportion stood at just three per cent.

Prior to the onset of the credit crunch in 2007, lending conditions had been notably relaxed, with many customers offered generous terms by their mortgage providers.

However, criteria among the lenders have tightened as a result of the crisis, with more people turned down for credit than before.

Karen Barrett, chief executive of Unbiased.co.uk, commented: "The increase in those searching for advice from whole of market mortgage advisers on sub-prime mortgages points towards a squeezed market for these borrowers.

"While an increasing number of mainstream mortgage deals are slowly appearing back on the market, the sub-prime market remains slow, and these borrowers are therefore scoping out options through which they can access new deals."

The Unbiased.co.uk figures also showed that 38 per cent of the requests concerned advice for first time buyers, while 29 per cent were due to issues related to re-mortgaging.

Tags; Budgeting Advice, Young Family Finances, Credit Card Lifestyle,

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