Sub-prime mortgages boom
The sub-prime mortgage market expanded by 28 per cent during
2006, reports the Datamonitor
With the sub-prime mortgage
deal you can cover individuals who
can not secure a mortgage from a mainstream provider
because of their poor payment history. Figures totalled at 24.6
billion during 2006 and potentially could reach 31.5 billion
Datamonitor feel that buoyant economic status and the ready availability
of credit is causing the flowing growth, mainly low unemployment,
high valued property and low interet rates all in one leading
to high levels of consumer debt.
Datamonitor stated that due to the complications and rejections
by conventinal mortgage
providers, this has only cause sub-prime
mortgage to grow more intensivly.
Disadvantages to this however still remain strong as increased
consumer indebtedness means the market will have a stronger risk
and be more dangerous, if a sudden increase in defaulters rises.
Maya Imberg a report author said: "Despite the argument that
they have sophisticated underwriting models in place, UK sub-prime
lenders should take the US sub-prime mortgage crisis as a warning
and ensure they are not over-exposing themselves to highly risky
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