Thursday 9th of April 2009
Difficulties in obtaining credit are likely to leave many people needing to turn to non-borrowing solutions such as IVAs and bankruptcy, an expert has noted.
Robert Sinclair, director at the Association of Mortgage Intermediaries, explained that consumers with bad credit histories are finding it particularly difficult to be approved for finance in the current economic climate.
As a result, he suggested that many are likely to seek IVA help or enter into bankruptcy as they are unable to repay existing creditors.
Describing such consumers as being in a "difficult position", Mr Sinclair said: "If they can’t obtain further credit then the only places they can end up are in things like debt management."
His comments come following Moneyfacts findings that subprime mortgage products have declined significantly in the first three months of 2009.
The price comparison site revealed that 23.7 per cent of all mortgages were available to people with poor credit histories at the start of January, but this proportion is now just 0.6 per cent.
