Adverse credit mortgages ‘harder to secure’

Tighter lending criteria are making adverse credit mortgages more difficult to obtain, according to one industry spokesperson. However, Sarah Robson of the Council of Mortgage Lenders (CML) added that the mortgage climate is likely to be more hopeful for borrowers in the coming year. She said there is a general expectation that interest rates will be reduced next year. That will ease the pressure on some borrowers It does give some borrowers hope, Ms Robson added.

But she continued to state that those attempting to secure adverse credit mortgages still face some tough times. It will be more difficult for people to get adverse credit mortgages since lenders are tightening their criteria, Ms Robson concluded. According to recent CML housing market predictions, the base rate of interest will drop to five per cent by the middle of next year. It is currently standing at 5.75 per cent, with the next interest rate decision due on December 6th.