Market

FACT:
The mortgage market has changed a lot in recent years. In the past if you had a bad credit record you were pretty much ineligible for most decent homeloans. Now the impaired credit market means dozens of lenders will probably be able to help you – and plenty of brokers can guide you through the maze. Experts say getting to grips with this new industry’s jargon can be the first big challenge. The mortgage sector is often referred to as the ‘sub prime’ sector – with near prime, light prime and a host of other descriptions being thrown in for good measure. In a nutshell it is simply the lenders’ way of ranking possible customers.



If you only have a few very distant problems on your credit history then you will be a near prime candidate – and should always see if you can get a mainstream mortgage just like everyone else. Warning bells have actually been ringing recently about unscrupulous advisers who tell people they need to apply for expensive impaired credit loans when they could have been accepted on standard terms elsewhere. The Financial Services Authority, www.fsa.gov.uk, has an ongoing investigation into these claims. It is only if your financial history is clearly bad, with County Court Judgements, IVA or bankruptcy on it, than the sub-prime market will be your only option.