Mortgage holders could face financial difficulties
5.5 million mortgage holders throughout Britain could face significant financial difficulties as a consequence of the U.S. sub prime catastrophe and the tighter lending climate it has generated.
Looking at the report in print by end user research group Mintel, it stated people with poor credit files were not the only people at jeopardy. Homeowners who are self-employed or moved house regularly were also in the firing line.
Senior finance analyst, Toby Clark at Mintel commented: "The focus over the last few months has very much been on sub prime borrowers, but they are only the tip of the iceberg. In today's more conservative lending climate, the unconventional financial situation of these homeowners means that they will now face higher repayments and increased lenders' fees when remortgaging or moving house."
The Council of Mortgage Lenders brought forward set figures for 98 percent of all UK residential mortgage lending.
Mintel stated that nearly 9 percent of British mortgage holders were categorised as sub-prime, leaving 24 percent "non-standard" and moderately at high risk simply due to having irregular incomes.
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