As more banks become uncertain and consumers get jumpy, a recent report has noted that there has been a decline in nearly 71% in those offering subprime mortgage United Kingdom deals. Julia Harris from MoneyFacts explains, “This is in huge contrast to what was happening last year. In March 2007 there were 32 lenders offering sub prime mortgages; today there are only 20. The number of mortgages available to those with adverse credit is dropping as well. A year ago there were 6,501 products available; today there are 1,867, a drop of 71%.
“In a society where we continue to witness ever-increasing debt problems, this is going to limit the options available to those that have to resort to sub prime borrowing. This is yet another way of preventing people getting on the housing ladder and in some cases even pushing them off it.
“Amber, Scarborough Specialist and SALT are all specialist arms of building societies, formed when the market was booming, property prices were on the up and funding was cheap. Some building societies took the opportunity to make the most of the market and set up sub prime arms. Rather than adding to their existing mortgage ranges, separate arms were set up in order to keep funding and processes separate and to protect the original brand.”
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