'Still hope' for adverse credit mortgage
24 November 2007
Despite the tightening of mortgage lending following the credit crunch, there is still hope for current rental tenants desperate to get on the property ladder, the Council of Mortgage Lenders (CML) has claimed.
Current economic fluctuations have made it "more difficult" for borrowers to obtain adverse credit mortgages.
Predictions of interest rates falling to five per cent by mid 2008 will help to open up the market to offer more opportunities for those with poor credit histories.
"It will be more difficult for people to get adverse credit mortgages since lenders are tightening their criteria." Sarah Robson, press officer for the CML, admitted.
She went on to add: "The general expectation at the moment is that there will be a reduction in interest rates next year. That will ease the pressure on some borrowers… It does give some borrowers hope."
Homeowners with a poor credit history may be able to improve their credit status if they can consistently meet mortgage repayments, she concluded, but "their previous record would still be there".
The Bank of England base rate currently stands at 5.75 per cent, with the next decision due on December 6th.
