Homeowners face a sub-prime threat

02/10/2007

A vast majority of UK homeowners may face increases in mortgage payments of up to 50 per cent.

Current mortgage customers who are taking advantage of these fixed rate deals could find each other tagged as “sub-prime” if they decided to remortgage.

Director of the UK’s best growing internet mortgage broker, Dennis Reed at moneygate commented further: “As lenders look to tighten their terms a person could be labelled a bad credit risk and sub-prime just because of a small financial error in their past. Those who apply for mortgages will also need to be much more accurate about the information they give.

“Many people are in for a shock and they should think about changing their mortgages as soon as possible before the market does. A skilled broker should be able to hunt around now for the best deals available and anyone with a mortgage due for renewal in the next six months should really check their situation, before it’s too late.”

Datamonitor states that high levels of consumer debt in a field of increasing interest rates simplify that the UK sub-prime sector poses more risk than ever.

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