Borrowers in UK with a non status credit history have always found it a little difficult to arrange for loans. In the last few years, several changes have taken place in the real estate market as well as mortgage market in the UK which makes things a little more uncertain for these borrowers. At the peak of the real estate market in UK, there had been a huge number of loan companies and sub prime lenders that were willing to offer mortgages to non status borrowers, some even without a credit check. However, with the credit crunch and the collapse of the real estate market, things have changed and the availability of mortgages to all borrowers, even non status borrowers has been affected.
How is the market in UK for mortgages in 2010?
The changes that have taken place in the UK economy over the last few years have led to the current changes in the market in 2010. This year, borrowers would find the mortgage market tightened. In the past, a large number of loan companies had to deal with mortgage defaults and arrears which made it difficult for the mortgage lenders to recover their funding. Also, with the crash of the real estate market, several loan companies found the properties in negative equity which made things even more difficult for them. In 2010, borrowers would find fewer non status mortgage companies in the market since plenty of companies have gone bust and have withdrawn from the market due to their huge losses.
Are mortgages still available to UK non status borrowers?
UK borrowers with non status credit history would find it quite difficult to get a mortgage in 2010. The number of loan companies that still offer mortgages to these borrowers has declined. However, it is not completely impossible for non status borrowers to find a mortgage option. There are only a handful of companies that still offer non status mortgages in 2010 and the ones that still do, offer these mortgages on a substantially high rate of interest. The other thing that needs to be kept in mind is that with non status, you would have to be ready to be denied a mortgage with the main stream mortgage companies.
In UK, loan companies like The Mortgage Works, Ocean Finance etc still offer mortgages to these borrowers. Most companies do not offer no credit check loans in UK this year. However, a few of them are willing to accommodate non status borrowers in exceptional cases if their banking and income history are strong. Non status borrowers would not have many choices available in 2010 and so they would have to go for the few options that are still available to them. Since the housing prices in UK are still quite high in 2010, most people have to rely on mortgages for investing in a property which would make it necessary for these borrowers to take non status mortgages on high interest rates.
Paul Donald is an Oldham (Manchester) based mortgage adviser who deals with both private and corporate clients.