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Specialist mortgages can improve credit ratings, reveals A&L

Brokers say that specialist mortgages can improve impaired credit profiles, according to Alliance & Leicester Mortgages.

Four in five brokers – 80 per cent – believe the sub-prime market will continue to grow in the next two years with 19 per cent thinking it could increase by more than 20 per cent.

A&L research has revealed that 86 per cent of brokers say sub-prime and near-prime mortgages help their clients get on the property ladder.

The research finds that near-prime and sub-prime mortgages are an effective way for people to repair a damaged credit profile.

It says 79 per cent of brokers say their clients are aware that an impaired credit history can cause them problems with getting a ‘prime’ mortgage and even more – 86 per cent – say their clients understand that a near-prime or sub-prime mortgage will enable them to get on the property ladder and help rebuild their credit profile.

Head of intermediary mortgages Mehrdad Yousefi says: “It comes as no surprise that brokers are seeing an increase in the number of near-prime and sub-prime cases they are dealing with. This market is becoming increasingly competitive with more lenders offering these specialised mortgages.

“It is encouraging to see that brokers say their clients know the value of these type of mortgages and that it is a good way of getting potential buyers on the housing ladder while enabling them to repair their credit history by maintaining regular payments on their financial commitments.”


The bond plays on

Many investors are questioning whether corporate bonds are still an attractive investment, with global interest rates rising and credit spreads close to historical lows. Significant changes in the market over the last 10 to 15 years mean the answer is not as black and white as it may have been a decade ago.

Nucleus looks to sign up 50 IFAs

Fledgling wrap provider Nucleus is in late-stage discussions with a number of IFA firms and expects to have signed up a total of around 50 by the end of the year. Chief executive David Ferguson says Nucleus is in talks with 60 adviser firms but only around 75 per cent meet its criteria of being […]

Debt data rethink after industry split

Plans for a data-sharing service to help lenders with the consumer debt crisis have been scaled back after failing to achieve industrywide support. The Personal Credit Dashboard initiative was devised by Apacs, a trade body for payment services. It was initially designed to enable the Council of Mortgage Lenders, the British Bankers’ Association and the […]

July record for non-conform business

GMAC-RFC has reported a record month for non-conforming business in July, with completions up by 79 per cent on the same month last year. The firm attributes the growth to its online systems and support.

Childcare - thumbnail

Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.


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