Fears raised over sub-prime mortgages
08/10/2007
Fears have been raised that thousands of British consumers are risking their personal finances by taking on an unmanageable mortgage deal through a sub-prime lender.
An investigation by the BBC recently established that sub-prime mortgage deals account for a disproportionately large proportion of repossession cases in the UK, which has prompted some people to question the stability of the sector.
The research was done by the Panorama and Five Live Reports programmes and discovered that close to 70 per cent of all repossession cases in the UK relate to sub-prime deals, despite the sector comprising only eight per cent of the overall market.
Commenting on the investigation's findings, Michael Coogan from the Council of Mortgage Lenders (CML) said: "Every lender is under a responsibility to check ability to pay and to make sure that the advisers that they're using are reputable ones."
Data complied by the CML showed that July of this year saw a record amount of mortgage related money borrowing for the month in the UK.
An investigation by the BBC recently established that sub-prime mortgage deals account for a disproportionately large proportion of repossession cases in the UK, which has prompted some people to question the stability of the sector.
The research was done by the Panorama and Five Live Reports programmes and discovered that close to 70 per cent of all repossession cases in the UK relate to sub-prime deals, despite the sector comprising only eight per cent of the overall market.
Commenting on the investigation's findings, Michael Coogan from the Council of Mortgage Lenders (CML) said: "Every lender is under a responsibility to check ability to pay and to make sure that the advisers that they're using are reputable ones."
Data complied by the CML showed that July of this year saw a record amount of mortgage related money borrowing for the month in the UK.
