28-09-2007
Adverse credit borrowers rarely refused
Would-be mortgage borrowers with an adverse history of credit are rarely refused mortgages, an expert has claimed.
According to comments made by Mike Pendergast, a representative from advice firm Zen Financial Services, full rejection only occurs in the rarest of instances, with most borrowers able to find a lender that is happy to provide a loan providing the customer is willing to accept the terms on offer.
"Most lenders will do adverse mortgages which are similar to a normal mortgage but they'll charge a bit more in terms of interest or arrangement fee," said Mr Pendergast.
"The underwriting criteria are a little less strict than a standard mortgage would be. Most people will offer a mortgage but it will be at a more expensive rate," he added.
Indeed, according to the Council of Mortgage Lenders, there has been an increase in borrowing levels within the sub and near-prime mortgage markets as there are increasingly more individuals with.