The number of people with low-credit ratings who are being afforded mortgages is rising, according to a report out yesterday.
The sub-prime mortgage market is set to continue to grow according to the latest research from market analyst Datamonitor, after having increased by 26 per cent during 2006 to a total of £24.6 billion.
Sub-prime mortgage lending allows people who have been turned down by mainstream banks and financial lenders, or have defaulted on payments in the past, to obtain a mortgage.
And the market is expanding at twice the rate of the normal mortgage market, although it is still only likely to account for less than ten per cent of the total market sector by 2011.
Nevertheless, Maya Imberg, the author of the report, has claimed that the increasing number of people who are unable to cope with their financial situation is fuelling the increase.
"More consumers are unable to cope with meeting their financial commitments," she said. "High levels of consumer debt coupled with more difficult economic conditions will drive the sub-prime mortgage market forward over the next five years."
Find out more about sub-prime mortgages
© Adfero Ltd