Tuesday, May 01, 2007

What is a Sub Prime Mortgage? Exist in Swindon?

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).

No comments: