Bad credit mortgage lending has significantly fallen.
FSA data has revealed that at present bad credit mortgages account for less that half a per cent of the mortgage market.
Adverse credit mortgage lending has dropped dramatically since 2006 when the property market was at its peak.
Mortgages to those with a poor credit record has fallen from a 5% market share in 2006 to a 0.26% market share in first quarter of 2012.
Lending for those with adverse credit is continuing to contract and the market is shrinking further.
In Q2 of last year it was just 0.34% and figures for Q1 this year reveal it has fallen further to 0.26%.
In 2011 to 2012 only around 3,100 bad credit mortgages were approved which is just a fraction of the 900,000 mortgages which were approved market-wide.
Data also shows that since December's Mortgage Market Review the number of mortgages where the applicant's income was verified, has also significantly increased. In 2008 less than half of all mortgages approved were verified, this figure substantially increased to over two thirds in the first quarter of 2012.
If you have a less than perfect credit history and are looking for a bad credit mortgage you are recommended to contact 'whole of market' broker Deal Direct. Our advisers will search the entire market to find a lender and a mortgage to suit your needs.
Call one of our impartial advisers today for a quote.
