Borrowers ‘unaware’ of mortgage payments
The majority of Britons are unclear about lending criteria for bad credit mortgages, a new study reveals.
According to research by Beacon Homeloans, less than 50 per cent of consumers are aware that missing payments on unsecured borrowing such as credit cards could hinder an application for a secured Homeowner loan.
Marketing manager Nicola Severn said: "This research shows that more needs to be done to educate consumers about the non-conforming market and the effect an individual’s financial status has on their ability to borrow."
She added that there was a need for consumers to take advantage of the independent financial advice available to them when looking to get onto the property ladder.
Meanwhile, a third incorrectly believed that a "family history of debt" would cause their application for credit to be rejected.
Research conducted by the Association of Finance Brokers last week revealed that a rising number of mortgage intermediaries are providing "appropriate" advice on secured loans.
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