Mortgage lenders should be ‘flexible’ with bad credit consumers
Sub-prime mortgage lenders could do more to protect bad credit loan borrowers, an industry expert has suggested.
According to mortgage adviser for the Independent Mortgage Advice Bureau Simon Beames, credit providers should take more responsibility into who they lend money to.
He also claimed that lenders could be "more flexible" with those consumers who risk going into arrears as they struggle to make bad credit loan repayments.
As a result, lenders were advised to provide more financial guidance to those with debt management difficulties.
Mr Beames suggested that "lenders have got to be a bit more responsible – but having said that they load for risk and so their rates go up which make the repayments [harder to meet]".
His comments follow research from Citizens Advice which indicated that the rate of repossession of homes from mortgage lenders has doubled since 2005.
The study indicated that sub-prime lenders accounted for about 70 per cent of this rise.
Interfinancial providing you with breaking Bad Credit Loans news.
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