Sub-prime

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.

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Magellan cuts sub-prime mortgage rates to 5.42%

Magellan, the first sub-prime lender to launch since the credit crunch, has cut rates across its range to as low as 5.42%.

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HSBC fined $2.5bn over sub-prime mortgages

HSBC has been ordered to pay out $2.46bn by a US court after it lost a class action lawsuit.

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Bad Britannia mortgages hurt Co-op Bank

Co-op Bank’s current problems are mainly due to its merger with Britannia Building Society, an expert has confirmed.

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Co-operative Group loses more than £0.5bn

The Co-op Group has suffered substantial losses in the past year having written off bad mortgages.

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Poor maths raises risk of repossession

A new study has found a link between maths skills and borrowers’ likelihood of falling into arrears.

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New sub-prime lender to launch

A new lender offering mortgages for borrowers with adverse credit is expected to enter the market within the next few weeks, according to an industry insider.

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FSA fines mortgage lender and directors £1.2m

FSA fines ex-sub-prime lender Cheshire Mortgage Corporation Limited and two directors for mortgage sales and arrears failings and requires compensation for over 2,000 customers.

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1m have bought first home since credit crunch

One million households have become first-time buyers since the onset of the economic downturn, accounting for 1 in 10 mortgage borrowers.

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October house prices up 0.6% - Nationwide

UK house prices increased by 0.6% in October, more than offsetting the 0.4% decline recorded the previous month, the Nationwide house price index showed.

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Loyalty schemes

Does loyalty pay in the mortgage market, or should you switch lenders for the best deal?

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Tougher rules on mortgage lending to be introduced in 2014

The Financial Services Authority (FSA) has confirmed that it will introduce rules designed to prevent irresponsible mortgage lending in its Mortgage Market Review.

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Case study: Bad credit mortgages

Julie Tyler is a 32-year-old store manager who managed to take her first step onto the property ladder, despite having a history of bad debt.

Top Tips...

Top tips for bad credit mortgage borrowers

If you have a damaged credit record you may well need specialist mortgage advice.

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Credit repair in the UK

If you have a bad credit rating, it makes sense to set about improving it as soon as you can.

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Individual Voluntary Arrangements (IVAs)

An Individual Voluntary Arrangement (IVA) is a formal and binding agreement between an individual that owes money and the organisation to which the money is owed.

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