Adverse credit mortgages are likely to increase with a second recession.
The need for adverse credit mortgages could well be on the increase with news of a second UK recession. Since the credit crisis the cost of living has steadily risen and increasing costs have pushed some into debt.
High street lenders concerned about the escalating eurozone crisis and a second recession at home are restricting lending further.
Mortgage applications are ever more detailed and complex, and a mortgage application refusal is becoming likely for those with a less than perfect credit score.
Would-be home-owners and those looking to remortgage who have had previous financial problems, are turning to specialist lenders who offer adverse credit mortgages.
Lending criteria is this area is also being affected by rising funding costs and so already high rates are on the increase, however for some high rates have to be paid to achieve their home-owing dream.
Recent data reveals that mainstream mortgage lenders reject around 25% of all mortgage applications because of an applicant’s inadequate credit rating or employment status. In today's troubled financial climate it is estimated that around 40% of the UK population has experienced some kind of credit issue.
Mortgage applications can be rejected for many reasons and if you are looking for advice or a comparison of adverse credit mortgages contact independent 'whole of market' broker Deal Direct.
