Sub prime mortgages reintroduced for people with poor credit history

NPowerUser

Will this help the housing market and will this lead to other sub prime lenders coming back on the scene?
http://www.guardian.co.uk/money/2010/oct/29/sub-prime-mortgages-return

Jonbvn

I hate to imagine what rates these lenders will be looking for? Double figures?

GMS

This is not a return to the sub prime lending of old by any stretch of the imagination.

These lenders are taking a section of the marketplace who are being turned down by high street lenders for very minor indiscretions.

The market is desperate for lender's like this and any more are welcome.

As for the rates, they will reflect the extra risk. However they are not double figures as previously stated and are very competitive.

dollydiva

Well you can't blame them for trying to fill a gap - well a chasm really - opened up by high street lenders being too scared to lend to anyone without a perfect credit score.

It does say 'minor blemishes' not whopping great debts. Shame that the big lenders have excluded so many and now forcing folk to go elsewhere...

Thrugelmir

NPowerUser wrote: »

Will this help the housing market and will this lead to other sub prime lenders coming back on the scene?

If you are referiing to the US banks and finance houses.

The answer is no, most have gone home or now lend insignificant amounts. In the case of Lehmans gone bust.

The sub prime debt in existance still needs to be repaid.

riverboat2001

I'm not an expert, but i think this is a good move. Surely competition should create a wider choice of mortgages, whatever your circumstances. Perhaps eventually the High Street will ease up as it see's lots of people with very minor indescretions going to different lenders.