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Less affluent will struggle to get mortgages, says charity

Article Category: Debt Management Help and Advice

Less well-off people may find it harder to get mortgages, one sector charity has asserted.

A spokesperson for debt charity Credit Action commented that the credit squeeze is likely to affect the mortgage market, with less affluent consumers finding the home loan options available to them restricted.

"There is no doubt that the less well off will find it harder to get mortgages," she remarked.

Pointing out that sub-prime mortgages account for about ten per cent of the market share in the UK, the charity member said that the situation in the US has "obviously" affected these products.

Her comments came after a study from price comparison website MoneyExpert found that rejected mortgage applications have risen by 60 per cent in the past six months, growing from 463,000 in March to 783,000.

Borrowers between the ages of 25 and 34 were found to be particularly affected by tighter lending conditions and less product choice.

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Created on 18/10/2007 11:51:01
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