Consumers seeking to refinance their existing adverse credit loans, or get a new one may soon be getting some extra assistance, thanks in part to moves within the government to try to rescue the mortgage market. Although many have blamed the adverse credit loan market for the housing crisis, it remains clear that these loan holders do need assistance in paying off their adverse credit loans on time.
Peter Williams, executive director of IMLA, said: “We welcome all positive action from the government to offer support to first time buyers particularly affected by the credit crunch. But the government’s primary concern should be the drastic lack of liquidity in the market. Offering first time buyers ‘rent before you buy’ is a sticking plaster, not a long-term cure.
“The proposals put forward yesterday by the CML are welcome and need urgent attention. We also need an early report from Sir James Crosby on his assessment of the underlying problems in the mortgage market and their potential solutions. Key industry trade bodies and those in the wider finance sector must speak with one voice to put further momentum behind finding a package of solutions to kick start the mortgage market.”
Related reading: Adverse Credit Loan
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