Sub Prime Mortgage Loan Products Possibly Making a Comeback in the UK
Many feel the sub-prime mortgage movement was the catalyst for the economy to dive into a crisis mode. That being said, the housing market remains in recovery mode with the rest of the economy and no signs of light are evident yet. The sub-prime mortgage lending products have been deemed dangerous and like poison to this market, but never fear, they seem to be making a comeback.
The lending criteria for anyone looking for an original mortgage or remortgage is the same. It includes possessing squeaky clean credit and a significant deposit, which is quite an uphill challenge for most. Currently, any loan product with a 90% loan to value is almost considered to be a sub-prime type product.
Some experts close to the housing market believe without a sub-prime set of loan products, the housing market is set for a long and struggling recovery period. A suggestion for lenders to be more flexible is often heard these days.
One mortgage lender, Kensington, recently announced offering a herd of recession fighting products. These products are designed to help the most destitute of borrowers, but Kensington stands by the products as being anything but sub-prime.
Harvey Jones of website lovemoney.com has a firm belief in sub-prime mortgages. He believes the products will help those who simply need the opportunity to get back on their feet after enduring an economic meltdown which took many innocent bystanders as victims in its path. Recovery for most has been and continues to be a painful experience.