Mortgage Lenders Tighten Purse Strings
Thursday 23rd August 2007 Individuals with a bad credit history may find it more difficult in the near future to get themselves on the property ladder as mortgage lenders become more stringent with their lending requirements.
Fuelled by the recent housing slump in the US sub-prime mortgages – those which are sold to customers with a poor credit history are now harder to take out as sub-prime mortgage lenders become worried that those circumstances in the US could repeat itself across the Atlantic.
Sub-prime mortgage lenders have also started to hike up their rates with rises over the last week ranging from 0.5% to 2.5%. This could have an affect on people who have taken out these mortgages who may now find themselves in finanicial difficulty as they struggle to cope with rate rises.
It is still hoped that the crisis in America can be avoided on British soil – all sub-prime mortgage lenders are regulated in the UK by the FSA and The Council of Mortgage Lenders recently published a document which stated that lending in the UK had been far less risky than in the US.
Related Articles
Student Lending Increased - 13th June 2007
New Mortgages Hit A New Low - 6th June 2007
Details Lost In The Post - 4th June 2007
Which Warns – Watch Out For Payment Protection -18th May 2007
Ghost Students Pilfer Millions - 16th May 2007