Sub-prime a mystery to most people

Beacon Homeloans has called on the industry to educate consumers about the sub-prime market following findings that only 19% of consumers realise the market exists.

A survey by the lender reveals that despite 30% of people admitting to having credit difficulties, few have any knowledge of the availability of specialist mortgages.

Nicola Severn, marketing manager at Beacon Homeloans, says it is imperative that the industry educates consumers concerning the existence of the sub-prime market and what it can do for them .

She says: “With more and more consumers facing credit difficulties, an increasing number of people will not be able to get high street mortgages and will have to look elsewhere for their financing.

She adds: “The financial services industry needs to work together to make sure that all consumers understand that just because they have had credit problems in the past it doesn’t mean that they will never be able to get a mortgage.”

But Jonathan Burridge, managing director of Quantum Mortgage Brokers, says the fact that 19% of consumers have heard of sub-prime is positive rather than negative, considering that sub-prime makes up such a small percentage of the overall mortgage market.

He says: “The sub-prime sector is not mainstream and most consumers will only need to have an understanding of the sector unless their circumstances demand it.”