The market for non-conforming mortgages has increased six times faster than the mainstream mortgage market, the Council of Mortgage Lenders (CML) has revealed.
Non-conforming mortgages ñ which allow people with former credit problems to borrow for homes ñ are now worth an overall £25 billion, said the CML.
This is up from just £1 billion in the mid-1990s and the market for people who would once have been considered high-risk is improving all the time.
Options have vastly expanded in the last ten years with a full range of products allowing people to compare mortgage rates to find the best deal for them.
Competition in the market is a major factor in the better prospects, with the 30 specialists in the market – more than double the number of providers operating in 2000.
While the products are inevitably a little more expensive than equivalent mainstream products, providers are now prepared to offer higher loan-value ratios.
Early redemption fees are now also a lot less common. The surge in providers has come alongside rapid growth in the market for such deals as personal debt has soared.
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