20-08-2007
UK sub-prime mortgage lenders tighten criteria
A number of sub-prime mortgage lenders have modified their lending criteria following recent market turbulence in the US, it has emerged.
According to reports, a number of UK lenders have implemented a decision to raise interest rates, while others have gone as far as to withdraw their range of mortgages from the market.
Sub-prime lending can be referred to in a number of different ways, including second chance lending and near-prime.
"Up to now it has been possible, providing you are not bankrupt, to get a mortgage, however bad your credit is," said Ray Boulger, a representative from mortgage brokers John Charcol.
"The borrowers who will notice most are those with the most adverse credit," he added.
Indeed, the range of lenders who have either withdrawn their products or increased rates include GMAC-RFC, Infinity Mortgages, DB Mortgages and Preferred, according to Money Marketing magazine.
Buy to Let mortgages are based not on your personal income but on the rental income vs mortgage payments. If you are looking to get on the property ladder by purchasing a rental property, Simply Business offers a range of buy-to-let mortgages at very competitive rates.
Compare buy-to-let mortgage rates online