UK sub prime mortgage market

Tuesday, September 18, 2007

The recent credit crunch in the sub-prime mortgage market in the United States has dominated the financial news over the past week or two, and it now seems that the effects of the crunch are taking their toll in the UK.

Many bad credit customers have resiged themselves to the fact that they may be unable to get a mortgage to buy a home, at least for some time. Bad credit customers, who have always found getting an affordable mortgage difficult, may now find that the chances of homeownership are even slimmer.

Following the high level of defaults on sub-prime mortgages in the United States, the problems in the sub-prime sector have made their way across the pond to the UK. A number of sub-prime lenders have now announced that they are taking their mortgage ranges off the market, in some cases for just a short space of time and in other cases on a longer term basis. New mortgage products that were due to be launched have been delayed, and a number of other lenders have hiked up interest rates on bad credit mortgages still further. This is causing problems for brokers such as Solution Mortgages Limited but has been limited due to their links with balance sheet lenders.


Solution Mortgages Limited use several lenders who lend off their own balance sheet. This means that although they still need to be wary of the economic backdrop and be more prudent with their criteria they are not as heavily reliant on the money markets - which are effectively shut at the moment. This can be seen with the situation with Northern Rock last week. They have a serious liquidity issue and needed to approach the Bank Of England for a loan facility. While there are no apparent issues with the quality of Northern Rock's loan book the fact they do not effectively have access to funds (prior to the Bank of England facility) has been alarming.

Business therefore has not been disrupted to heavily and Solution Mortgages Limited completion times and new mortgage/remortgage enquiries have been good. Apply online at http://www.solution-mortgages.co.uk/ or call 0845 123 1260.

Bad credit mortgages

Solution Mortgages Limited specialise in bad credit mortgages. If you are looking to buy a property but have CCJ's, defaults on loans or credit cards and been turned down by a high street lender - do not despair. We should still be able to help you buy the home of your dreams.

We use a range of specialist lenders who will consider applications for bad credit mortgages. You will need to have at least a 5% deposit and you will also need to consider stamp duty and solicitors costs.

Solution Mortgages will take care of the bad credit mortgage process for you enabling you to purchase the property you desire.

Poor credit mortgages

Solution Mortgages Limited specialise in poor credit mortgages. If you are looking to buy a property but have CCJ's, defaults on loans or credit cards and been turned down by a high street lender - do not despair. We should still be able to help you buy the home of your dreams.

We use a range of specialist lenders who will consider applications for poor credit mortgages. You will need to have at least a 5% deposit and you will also need to consider stamp duty and solicitors costs.

Solution Mortgages will take care of the poor credit mortgage process for you enabling you to purchase the property you desire.

Kensington refocuses on prime

Kensington says it is taking the view is that, in the short term, there will be no institutional investor appetite for portfolios containing high LTV adverse credit mortgages.It has therefore taken the decision to refocus its resources in the short term on its range of Prime mortgages and temporarily cap its Adverse range at 75% LTV, increasing Adverse rates at the same time.

To guarantee current rates and criteria, applications must be signed, dated and received by close of business on Friday 21 September. The new Prime rates and new Adverse rates and criteria will come into effect on Monday 24 September.

Ian Giles, Director of Marketing, said: “As you might expect from an experienced lender like Kensington, in the case of our adverse credit mortgage range, we will continue to protect our long term future through exercising caution in the short term. And, with the success we have already had with our range of Prime Self-Cert and Buy to Let mortgages, since launching them late last year, it makes sense to refocus our resources on the prime sector, until investor appetite for higher adversity mortgage portfolios returns.”

Mortgage brokers in Cheshire

If you are looking for a mortgage broker in Cheshire and you have adverse credit, speak to Solution Mortgages Limited. We are a mortgage broker in cheshire who can help with your mortgage requirements even if you have current mortgage arrears, CCJ's or defaults or have been bankrupt.

As mortgage brokers in Cheshire we are based in Congleton but work on a national basis. Even if you have been turned down elsewhere we may still be able to help. We use a select panel of lenders who can help people in your circumstances.

Can't get a mortgage?

Monday, September 17, 2007

If you can't get a mortgage by traditional means ie. from a high street lender, speak to Solution Mortgages Limited today. We have helped lots of customers who can't get a mortgage from traditonal lenders due to adverse credit ie CCJ's, defaults or been made bankrupt.

Having adverse credit does not mean you can't get a mortgage and we will be happy to look at your circumstances. We use a select panel of lenders who will consider taking applications from people who can't get a mortgage by more traditional means.

Bad Credit Remortgage

Friday, September 14, 2007

If you have a bad credit rating and have been turned down for a mortgage or remortgage elsewhere do not hesitate to get in touch with Solution Mortgages. We specialise in helping people with a bad credit rating and help them secure a bad credit remortgage.

A bad credit remortgage is available if you have current mortgage arrears, have CCJ's, are involved in an IVA or have been made bankrupt.

Call Solution Mortgages today on 0845 123 1260 or apply online at www.solution-mortgages.co.uk

Poor Credit Remortgage

When applying for a mortgage in the past, you may have experienced several problems based on your previous credit history. Some lenders may see you as a high risk case because of past performance and refuse you the finance you require.

Solution Mortgages can help whatever your credit problems, as we use a range of specialist lenders that will consider applications from potential borrowers who have a poor credit rating against them.

We will provide you with the information you require to help you make the right decision and process your application as soon as possible to ensure your funds are available on time.

Lenders withdrawing from the sub-prime market

In recent weeks three lenders claim they have not completely withdrawn from the sub-prime market and will return after re-pricing their products.

Scott Morrissey of Solution Mortgages Limited said, “I think we’re going to see a lot of lenders retracting from the market now and lying low for the next few months. None of it surprises me as I have expected it to happen for some time now.”

Northern Rock Shares Plummet

Shares in the lender have plummeted by 24 per cent after the decision was confirmed last night.
In the announcement, Northern Rock says that if the current market conditions remain until the end of 2007 it expects underlying profit before tax for 2007 to be around £500m to £540m, compared to £588m in 2006.

It says the outlook for 2008 will depend on the speed of the recovery in global wholesale funding markets and where interest rate spreads stabilise in the global wholesale funding markets, as well as the evolution of the company’s business model.

Although Northern Rock expects its new lending volumes to increase once the wholesale funding markets return to more normal volumes and prices, it must now plan on the basis that the wholesale funding markets will not return to historic levels in the short to medium term.

New sales staff

Monday, September 3, 2007

Solution Mortgages Limited are pleased to announce that Lucy Vernon and Vicki Mutter have joined their rapidly growing sales team. Both Lucy & Vicki have extensive experience working in the adverse credit market and will be an asset to the team.

Solution Mortgages remortgage completion times

Saturday, September 1, 2007

In August 2007 Solution Mortgages Limited's average remortgage completion time from initial enquiry until completion was 22 working days.

Jamie Smith, Completions Manager said, 'we are constantly striving to streamline the process and ensure customers receive their monies on time'. At Solution Mortgages we place great emphasis on speed of service as the majority of our customers need a fast remortgage.