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For the few banks that are offering CCJ loans at this time, it appears as though high interest rates are incredibly common. This type of loan allows the banks to charge more interest, since most CCJ loan applicants are in the subprime category. Although many may need a CCJ loan at this time, they will either have to be prepared to pay the cost or wait for the markets to improve.

Ray Boulger of John Charcol commented, “We might look back at this moment and say this was the peak for gilt yields and therefore the peak in fixed-rate pricing. And for lenders in a strong capital position, there is now a very good argument for increasing your lending to the maximum. The margins that they can obtain today are at a level they would have died for a year ago.”

Chancellor Alistair Darling stated, “I’m very concerned that people ought to be treated fairly, especially people coming off fixed rates and going on to different rates. We have met the Council of Mortgage Lenders to try to reach an agreement to ensure that people are treated fairly, but if that isn’t happening I will ask the FSA to pursue the matter.”

Related reading: CCJ Loan