Huge financial losses for bad credit mortgage applicants
June 3, 2008
A recent report has shown how a number of bad credit consumers are suffering huge financial losses after their mortgage lenders pulled out of their mortgage offers at the last minute. The recent financial turmoil in the money markets have led to increased worry amongst lenders and increased stringency when it comes to lending, particularly in the sub-prime sector. Reports claim that some bad credit customers who thought that they had secured a mortgage and that everything was running smoothly have then had the rug pulled out from under them, leaving them with losses of thousands of pounds in some cases.
The credit crunch has taken its toll in many areas of the financial markets, but none more so than the sub-prime sector. As a result of the increased concern amongst lenders some sub-prime lenders have reportedly been finding ways to back out of mortgage offers made to sub-prime customers. This has been done at the last minute in many cases, between exchange and completion, and has left some borrowers with a loss of thousands of pounds that was put down as a deposit.
One industry official stated: ‘Once the parties have exchanged, the buyer is legally obliged to buy the property or they will lose their deposit, which even on a modest property at current prices is likely to be more than £20,000, and may also face being sued for breach of contract. Now we are finding that although the lender does not technically withdraw the offer they come up with queries on the day before completion.’
A number of bad credit loans have been taken off the market altogether by lenders in the UK following the credit crunch, and therefore many sub-prime consumers are struggling when it comes to finding a mortgage. However, these reports indicate that not even those that think they have secured a mortgage are safe.
Related Articles
- Post office will be offering broadband delivery The Post Office service in the UK has seen a rapid decline in custom over recent years, and figures and losses have become so dismal
- Prepaid Credit Cards Prepaid credit cards are a relatively new introduction to the UK credit card market. They can be used by parents to 'load' a predetermined amount
- Bad Credit Loans Welcome to the bad credit loans section of OnlyStop.com. If you have been refused credit in the past or have been declared bankrupt then getting approved
- Reduced workloads result in FOS job losses In a recent report the Financial Ombudsman Service has announced that it will be cutting back on staff number as a result of expected reduced
- Job losses announced at Barclays Officials from Barclays Bank recently announced that there would be job losses at its credit card division, as the bank moves to streamline processes and
Comments
2 Responses to “Huge financial losses for bad credit mortgage applicants”
Got something to say?
mortgage rates…
The best mortgage calculator is at , you will be prompted to enter the value of the home, the duration of the loan ( in……
The best mortgage calculator is at , you will be prompted to enter the value of the home, the duration of the loan ( in…