Credit rating problem mortgage market expands

The number of mortgages tailored for people with credit rating problems has grown six times faster than the mainstream market in recent years say new figures.

The Council of Mortgage Lenders (CML) research showed that while just £1 billion was leant to people with county court judgements or other debt issues in 1996, this has now risen to £25 billion.

The number of deals open to those with credit rating problems has also vastly improved with a range of offers now rivalling the mainstream.

Maximum loan-to-value ratios have also increased and the punitive fees applied to "non-conforming" mortgages have declined.

Much of this is down to increased competition in the market, with the 30 specialist providers now operating more than twice the number in 2000.

The increased supply reflects growth in demand as personal debt increases and more people apply for county court judgements and bankruptcy.

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