Less well off 'could struggle to get mortgages'
Published On 18 October 2007
People in the UK on lower incomes could find it harder in the future to obtain a mortgage as a result of recent developments in the global credit market, an industry expert has warned.A spokesperson for charity Credit Action explained that the recent international credit crunch would mainly affect the mortgage market.
She added: "There is no doubt that the less well off will find it harder to get mortgages."
However, the spokesperson explained that "doorstep lenders" - those who typically provide mortgages for the less well off - are unlikely to be hit "because their system is so different".
The Credit Action spokesperson said: "People have always gone to these people for their loans. Some people like them for their collection and payment methods, with the agent that comes round.
"You borrow a small loan for a short term and you know that you have to pay so much back every week for the next six months. People find they can budget for that."
A recent report from Moneysupermarket suggested that first-time buyers were struggling to get mortgages and homes as a result of the demand for property from buy-to-let investors.
