Mortgage news in
America indicates that
bad debt accounts for an enormous 164 billion dollars. Not only that,
banks from the UK are embroiled in the situation. Sub-prime or
bad credit mortgages are the major cause of this
lending crisis.
The
poor credit mortgage industry in the US could be in dire straits. According to the Centre for Responsible Lending, as many as one in five
sub-prime mortgage loans written during the course of the last two years could end up in foreclosure, known as
repossession in the UK. According to their figures, this accounts for over 2 million loans .
British banks are involved, with
HSBC facing soaring bad
debt charges over the course of 2006, much of which is from the sub-prime
mortgage market. Whether or not the poor
credit lending situation in America will be followed by a similar trend in the UK remains to be seen.
Adverse credit lending is a relatively recent industry, and was designed to make it easier for those people who have patchy
credit ratings to
buy houses .
Adverse credit mortgage are generally slightly more expensive than standard, or prime,
home loans .
