What Is Subprime? Mortgage Jargon Revealed
What Is Subprime?
Subprime means not normal; but in the world of finance, that is not necessarily a bad thing. It just means if you are subprime you do not fit the mould of the regular borrower. This might mean you have a different income stream, you might have debts or you might have a colourful financial past. So what is subprime? It’s a good deal of people up and down the UK.
What Is Adverse Credit?
Adverse credit is just the ‘colourful’ debt past that defined what is subprime. Your credit score documents your entire credit history, from credit cards to car loans to even mobile phone bills. It is also what a lender looks at when they decide whether to offer you a mortgage. So adverse just means that it isn’t as clean as it could be. So what is subprime adverse credit? It’s what makes you a subprime borrower.
What Is Light Subprime?
What is subprime light? Subprime light is a slightly different type of mortgage. It’s a mortgage for those who have a limited adverse credit history: they may have had one or two financial misdemeanours in the past, but essentially they are a good borrower. So what is subprime light? It’s a mortgage rate that is slightly higher than the normal rate you would find on the high street, to reflect the slight difference in borrower.
What About Heavy Subprime Then?
What is subprime heavy then? Subprime heavy is the other end of the scale: mortgages for those who have a bad credit history and probably still have bad debt problems. Unfortunately the credit crunch has all but stopped heavy adverse lending in the UK, so those who are considered heavy subprime will have a lot of problems finding a deal. So what is subprime heavy? It’s a mortgage that is just too risky to lend in the UK right now.
What Is The Best Way To Subprime Deals?
Once you understand what is subprime, you need to start to search for subprime. And the best way to do that is to talk to a mortgage broker. A broker will be able to source most kinds of subprime deals and offer you all the advice you need to make sure your subprime works and you have no further doubt to what is subprime.
