Bad Credit Remortgages
October 2nd, 2007 | by admin |As the number of people with bad credit has increased there has been a corresponding rise in the number of companies willing to offer bad credit mortgages and adverse credit remortgages. Typically, these have been the most profitable aspect of the mortgage industry. This is because the poor credit ratings enable companies to lend at higher rates of interest than for a standard mortgage.
However, the adverse credit, or subprime sector, has been hit by the US mortgage crisis. The impact of mortgage defaults in America has been to make the cost of selling on bad credit mortgage much more expensive. Basically, this means companies are less willing to lend money for bad credit mortgages. They are also increasing in cost because of the increased risk associated with rising defaults.
For those looking to get a bad credit remortgage the cost is likely to be increasing quite soon.
Bad Credit ReMortgage Loans in UK
Credit Crunch leads to higher mortgage costs - How the credit crunch in the money markets is triggering higher borrowing costs, especially for bad credit mortgages. - Article at the Times