Mortgages -
Mortgages offered to 'better qualified' due to credit crunch - 19/12/2007
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The ongoing credit crunch has made it more difficult to secure a mortgage on the high street, an industry expert has said.
Director of website Firstrungnow.com Helen Adams, whose website provides tips on getting on the property ladder, said that lenders were targeting low-risk customers who were most likely to make their repayments due to the financial crisis.
Indeed, it was the collapse of the US sub-prime mortgage sector, which saw many poorly-qualified customers defaulting on their loans due to their not being able to keep up with their monthly payments, which precipitated the credit crunch.
Ms Adams said: "Mortgage lenders are targeting better qualified people and lower risk people as a result of the mortgage crunch, as you'd probably expect.
"Things like guarantor mortgages, professional mortgages, joint mortgages and graduate mortgages will come to the fore."
She added that the traditionally high debt levels of graduates will not prove a turn-off to lenders - as these will be traded off against the generally high earnings that this demographic enjoys.
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