Second Mortgage With Poor Credit
High-risk lenders target vulnerable
Citizens Advice Bureaux (CABs) throughout the country are becoming increasingly concerned about evidence that mortgage lenders in the so-called 'sub-prime' market are encouraging social housing tenants to buy their homes with mortgages they cannot afford.
The bureaux say that many such tenants cannot afford to keep up the high repayments, and subsequently become homeless and lose their right-to-buy status when their homes are repossessed.
Right-to-buy has enabled more than 1.6 million council and housing association tenants in England and Wales to buy their homes since 1980 and has raised £46bn. However, in recent months, the surge in the sub-prime market - where specialist companies lend to more 'risky' customers, often with poor credit records - has raised concerns that social housing tenants are being deliberately targeted by some of these lenders.
Related Second Mortgage With Poor Credit links
Ten Steps To Defeat Your Debts
There's been a lot of doom and gloom about the UK's growing debt problem in the financial pages in the last week or so. First, the UK's five biggest banks announced their half-yearly results. Although their combined profits climbed 21% to reach £19.3 billion, bad debts soared by 29% to reach £5.8 billion. That's a lot of poor lending decisions!
Second, figures from the Department of Trade & Industry showed that over 26,000 people became insolvent or bankrupt in the second quarter of this year, up two-thirds (66%) on the same period in 2005 (learn more in Britain's Going Bust!). Third, mortgage repossessions hit 8,140 in the first half of 2006, which is the highest figure for five years, although moderate by historical standards.
For the record, this government has presided over the biggest increase in personal debt in UK history, with the total rising from under £500 billion in April 1997 to £1,228 billion in June 2006.
Related Second Mortgage With Poor Credit links
Second Mortgage With Poor Credit Link Partners and Resources