Fewer approvals for bad credit remortgages - but Deal Direct can still help.
Fewer borrowers applying for bad credit remortgages are being accepted by lenders. Of mortgage brokers questioned in a recent survey, over half said they didn't have any adverse clients approved for mortgage deals in 2011.
A recent Mortgage Solutions poll shows that more than 30 per cent of mortgage brokers advised they were unable to place a quarter of applicants who applied for bad credit remortgages last year.
The poll results come after the most recent Credit Insight report which shows that over 30 percent of borrowers who are not conforming are in arrears. Under suggested FSA changes to mortgage arrangements non-conforming borrowers would not be accepted for a remortgage deal.
Under the newly proposed FSA rules, self-certified mortgage deals will cease to exist. All potential new borrowers will be need to be able to verify their income. Market experts have commented saying that the figures were actually better than expected and it is actually surprising that more brokers have not experienced greater problems in getting mortgage approvals for borrowers with poor credit records.
In the current mortgage lending climate it is difficult enough for borrowers trying to achieve mortgage acceptance with a perfect credit score and therefore it is doubly difficult for those with adverse credit who, are often rejected immediately for most standard mortgage products..
Under new FSA proposals bad credit remortgages will become even more difficult to achieve for borrowers with previous credit issues and it is expected that 2012 will see the number of hoops that lenders need to jump through to help adverse credit borrowers increase.
