One in four sub-prime applications 'will be refused'

The firm says if current rules on LTV and credit history were applied retrospectively to applications between August 2006 and August 2007, then 25% would be declined by every UK lender. TML also says the average cost of a sub-prime mortgage is now between £60 and £200 a month more than in August, meaning many people could have their homes repossessed. TML says it is imperative for potential sub-prime borrowers to seek advice from well-resourced mortgage brokers who can keep on top of lenders’ criteria changes. Commenting on market developments, David Titmuss, managing director of TML, ...