The bad credit mortgage in UK banks, building societies and other lenders is increasingly in demand. From only a few specialist lenders 15 years ago, the bad credit mortgage in UK building societies and banks has now entered the mainstream. Some estimates suggest that UK consumers can get a bad credit mortgage in UK lending institutions very easily indeed, with more than 30 providers in this specialist market*. There are also thousands of deals to choose from, making it an active sector of the mortgage market.
Many of the deals for a bad credit mortgage in UK financial institutions are offered through intermediaries such as brokers and recent research suggested that brokers were planning to expand their adverse credit offerings this year to take advantage of increasing demand for the bad credit mortgage In UK homes, there is more and more demand for this type of mortgage and a lot of it has to do with rising insolvency figures and a lessening ability to deal with debt.
The increasing prominence of the bad credit mortgage in UK mortgage offerings is led by changes in the financial profile in the UK. For example, research last year revealed that the UK was one of the most indebted nations in Western Europe when it came to credit card debt. And consumer debt as a whole is at more than £1 trillion and increasing by several pounds a second**. It’s no wonder that there is so much demand for the bad credit mortgage in UK homes.
Insolvency has also contributed for the call for the bad credit mortgage in UK dwellings. In the second quarter of 2006 alone, 26,000 people became insolvent, which was 66.3 per cent more than the previous year***. This year’s figures are expected to break all previous records, which is likely to lead to even more need for the bad credit mortgage in UK financial institutions.
One reason for the growing number of insolvents may be the easy access to credit. Millions of plastic card transactions are carried out each year and getting credit is still reasonably easy. In fact, recent research suggests that some people have been able to get credit without any proof that they will be able to repay. When the bills mount up, insolvency can seem like the only way out.
With the bad credit mortgage in UK financial institutions, insolvency does not mean the end of getting a home. In fact, there are many lenders who welcome insolvents and those who have had individual voluntary arrangements. Of course, with the bad credit mortgage in UK banks and building societies, people who have become insolvent will usually have to have discharged their bankruptcy before qualifying for a mortgage, but with some lenders the qualifying period is as little as a day, so the requirements are not very onerous. And although you may have to pay more for the mortgage at first, in the long run, you may be able to shift to a product at a better rate. Meanwhile, as insolvencies rise, the bad credit mortgage in UK building societies and banks looks set to stay.
* Source: Trigold – 31/7/07 ** Source: http://myvesta.org.uk – The Financial Crisis UK – 31 May 2006. *** Source: www.moneywise.co.uk – Rob Griffin – 19 Oct 2006