During the stock market correction in February, there was much talk of sub prime mortgages in the US.It raises the question...what is a sub prime mortgage?
Do they exist in places like Swindon?...Yes
It is a mortgage for somebody who can't get a mortgage in the normal ways
The person could
1 be self employed & doesn't have a long term track record
2 have had some debt problems (IVAs, bankruptcies).
The rates & arrangement fees are higher as the lender is taking a bigger risk and more people default (don't pay the money back).
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