Mortgage Industry News

← Back

Non-conforming mortgages help credit ratings

Date: Fri, 19 Nov 04 Analysis

Research carried out by GMAC-RFC has found that a non-conforming mortgage - a mortgage designed for those with a bad credit history - can significantly help credit repair.

The research was carried out to better understand the non-conforming mortgage market. It found that a mortgage designed for people with bad credit could significantly improve their personal finance.

A total of one in three people who have this type of mortgage stated that their credit rating had improved since they took it out. A further 42 per cent of people said that their quality of life would be worse if they didn't own their own home.

GMAC-RFC's research also found that 57 per cent of people who had bad credit were quite happy to pay one or two per cent more to secure a mortgage than not to have one at all.

The research also exploded myths that surround the type of person who has bad credit.

Property values of homes with non-conforming mortgages were only slightly less than the national average - £138,000 compared to £162,000.

GMAC-REF also found that there is no heavy social disparity between those who have bad credit and those who don't. More than one in ten people with a non-conforming mortgage are in the top two social groups.

© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.