Lenders will help, "if you're happy to pay the price"
28 September 2007
People struggling to get a foot on the housing ladder have been reassured that there could still be a mortgage lender out there to suit their particular needs.
Zen Financial Services said that most lenders will still offer people with a bad credit history a mortgage, albeit at a higher rate than for other customers.
The comments come as a recent Council of Mortgage Lenders (CML) report stated that it had witnessed "a substantial expansion of the near prime and sub prime markets as lenders seek to assist the full spectrum of would-be buyers", with the number of self employed people and those with chequered credit histories increasing.
"Most lenders will do adverse mortgages which are similar to a normal mortgage but they'll charge a bit more in terms of interest or arrangement fee," Mike Pendergast, a spokesperson for the independent financial advisory service, said.
"With adverse credit, most lenders will have a range of products depending on the severity of the adverse credit. They generally refer to them as prime - being no adverse credit - light, medium and heavy.
"It's rare that someone will be turned away completely but at the moment with the current happenings in America some lenders are tightening up on who they will lend to. They'll always be a lender that will lend, if you're happy to pay the price."
