Credit-impaired mortgage numbers fall: Moneyfacts

The number of credit-impaired residential mortgages has declined by almost a third in the last six months, according to data collected by Moneyfacts.

With the overall number falling from 851 to 590.

The data also shows that the average two- and three-year fixed rates for credit-impaired mortgages has fallen, declining by 0.13 per cent and 0.30 per cent respectively in the same time frame.

The average two-year fixed rate has dropped from 4.49 per cent to 4.36 per cent, and the average three-year fixed rate fell from 4.51 per cent to 4.21 per cent.

Meanwhile, the average five-year fixed rate has increased in the past six months, rising from 4.76 per cent to 4.92 per cent.

Furthermore, Moneyfacts adds that 91 per cent of all credit-impaired mortgage products are only available through a mortgage broker.

The firm says that while credit-impaired mortgages are riskier than their full status resident mortgage counterparts, the current market is an entirely different lending environment to the climate before the onset of the financial crisis.

Moneyfacts finance expert Darren Cook comments: “Back in August 2007 there were 5,106 credit-impaired deals available – nearly 10 times as many as there are now – which accounted for 55 per cent of the entire residential mortgage market.

“However, the average two-year fixed credit-impaired rate is still a far cry from the average two-year fixed rate of 2.48 per cent available to full status borrowers.”

Recommended

Loans at 95% LTV getting cheaper: Moneyfacts

The cost of 95 per cent loan-to-value mortgages has been falling relative to those at 90 per cent as a result of heightened competition, research by Moneyfacts has found. The margin between the cost of two-year fixed rate mortgages at 90 and 95 per cent loan-to-value, is at its narrowest in seven years. The difference […]

House-Keys-Mortgage-Estate-Agent-700.jpg

Precise Mortgages launches new 3-year fix through Buy to Let Club

Precise Mortgages has launched an exclusive limited company buy-to-let three-year fixed rate mortgage through Buy to Let Club. The product is fixed at 3.54 per cent until 31 October 2019 up to 75 per cent LTV. It has an arrangement fee of 1.5 per cent. Early repayment charges are 3 per cent until 31 October […]

lifetime lease purchases
2

What is a lifetime lease purchase?

Lifetime lease purchase deals involve raising finance but not on current properties. Rather, they are taken out when consumers move home. They are called lifetime lease schemes. Although not identical to sell-and-rent-back options, they are unregulated too. Lifetime leases are designed for clients who want to move but either cannot afford to or don’t want […]

Auto-enrolment

Employers fined £52,500 for auto-enrolment failings

By Jamie Clark, Business Development Manager The Pensions Regulator (TPR) has taken the step of naming and shaming employers that have been served County Court Judgments (CCJs) for non-payment of auto-enrolment fines. We take a look at what this means for employers, their employees and advisers Shamed into action? Sixty-four employers have been served CCJs […]

Newsletter

News and expert analysis straight to your inbox

Sign up