Those that need an adverse credit secured loan to purchase a house seem to be choosing the options that will afford them the most security with their loan. This means that fixed rate adverse credit secured loans are more popular than ever, despite the fact that fees are at an all time high. While there is security in these types of adverse credit secured loans, experts worry that consumers may be paying too much.
Martyn Dyson, head of mortgages at Nationwide, said: “We recognise that borrowers want the security of being able to opt-out from their tracker should their circumstances change or interest rates rise which is why we provide a switch and fix facility. This enables customers to switch from their tracker mortgage before the end of their deal to a fixed rate product without incurring early repayment charges.”
CML head of research, Bob Pannell commented: “Mortgage lending activity remains relatively weak and will decline further in the coming months as a result of funding constraints and lower consumer demand. The majority of lending continues to be to people with larger deposits, which is prudent for borrowers and lenders in a slowing housing market.”
Related reading: Adverse Credit Secured Loan
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