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Cheap mortgages possible even with bad credit history

Date: Mon, 11 Jul 2005

Cheap mortgages are still available even to those applicants with a bad credit history.

A report by independent market analyst Datamonitor shows that many high-street lenders are still willing to offer house loans to those people who have a poor financial record, mainly because of increasing competition in the industry.

The research estimates that 300,000 fewer people in the UK were refused credit by mainstream lenders in 2004 and since 1999 the overall number of people declined credit by high-profile lenders has fallen by 600,000.

This trend means that potential home owners are benefiting from a wider range of products as well as more competitive rates.

"The increased saturation of mainstream markets has led to a number of mainstream lenders operating in the non-standard segment," said Karina Purang, financial services analyst at Datamonitor.

"Consequently, the non-standard sector is set to become very competitive in the near future."

Datamonitor also found that less people are falling in to the trap of a poor credit history, with a marked decrease in the numbers of county court judgements and repossessions.


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