You may associate the term 'sub-prime mortgage' with the global credit crisis - and you would be right to do so.
The terms 'sub-prime', 'non-standard' and 'bad credit' mortgages were used to describe deals aimed at those borrowers who did not fit mainstream lenders' requirements, usually because they had damaged credit histories.
Prior to 2007, various levels of sub-prime lending were offered, from light sub-prime where a borrower might have missed one or two mortgage payments in the past of have a couple of County Court Judgements on their credit record for non-payment of bills, to heavy sub-prime where people may have been bankrupt, had a lot of mortgage arrears, had a property repossessed or multiple CCJs.
Mortgage lenders no longer offer sub-prime mortgages, although one or two specialists will offer 'near prime' mortgages to those with very slightly damaged credit records.
Click here to find out more on sub-prime or bad credit mortgages.