|
 Borrowers are getting themselves into financial difficulties in a desperate attempt to get onto the property ladder, according to research.
A recent report by market analyst Datamonitor shows that the sub-prime mortgage market is growing.
Facing financial difficulty? Need a discrete solution to your problems?
Sub-prime mortgages are generally targeted at people with a poor credit rating and those who may have found it difficult to get finance from traditional sources.
The report found that a growing number of people are failing to meet their financial commitments and this is forcing them into the sub-prime market.
A string of recent interest rate rises have not helped matters, with five increases announced in the last 12 months, taking the base rate to a six-year high of 5.75 per cent.
"There remains significant opportunity in the UK sub-prime mortgage market," said Maya Imberg, financial services analyst at Datamonitor.
However, the sub-prime market could be set for trouble as borrowers in this category are more likely to default on payments.
Julian King, Director of National Homebuyers says this could lead to a slowing of the housing market. "It happened in the US recently and there is no reason why the UK market should not do the same."
National Homebuyers are the UK's leading fast property firm in the UK, guaranteeing a quick property sale for anyone who needs a quick sale. "We see thousands of people who are financially unable to sell their property on the open market because the delays involved will not allow them to sell their property before a repossession order is presented," he says.
"Continued interest rate rises will compound the problem to such time that the market flips into a downward spiral."
What are Social Bookmarks?
 Email this to a friend
 Printable Version
<< Homebuyer News Archive
|
