People with bad credit ratings 'struggling to get mortgages'

Date:Wednesday 15th April 2009
Author: Max Freedman

Consumers who have bad credit histories are in a difficult position when it comes to attempting to secure a mortgage, it has been claimed.

According to Robert Sinclair, director at the Association of Mortgage Intermediaries (AMI), mortgage providers are unlikely to raise their levels of subprime lending in the near future.

He made his comments in the wake of statistics produced by Moneyfacts which revealed that the number of available subprime mortgage products fell from 204 on March 31st of this year to eight on April 8th.

Mr Sinclair said: "People with bad credit histories are in a difficult position at the moment in that if they can't obtain further credit then the only places they can end up are in things like debt management."

The Moneyfacts figures also indicated that the number of available credit impaired mortgages peaked in July 2007 at 9,531, which represented over 61 per cent of all available products.