Poor credit does not always mean higher mortgages

A poor credit rating does not always mean higher mortgage interest and payments, according to the results of a new survey released today.

In 71 per cent of cases analysed by mortgage broker London and Country Mortgages (L&C), the applicant was able to obtain a “mainstream” mortgage products.

A spokesman for the group said that people with bad credit “can often secure a better rate than they thought possible” by shopping around.

James Cotton, mortgage specialist at L&C comments: “All too often, people assume that because theyíve had some credit problems in the past, they will have to pay a much higher interest rate and in some cases, high broker fees.”

In related news, the Bank of England released figures today which show that the growth rate in mortgage lending slowed yet again in April.

Lending growth was lower than the rate for March and the preceding six-month average.

© Adfero Ltd

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