Although analysts are not particularly surprised that CCJ loans are now almost extinct, this will affect a good portion of the populace that relies on this type of loan for emergency funding. It has never been terribly easy to get a CCJ loan, but now, as banks do all they can to reduce their risks, they are getting away from offering these loans to any customer. It is expected that even if CCJ loans do become available again, they will never be available on a large scale, at least for several years.
Chris Cummings, Director General of AMI, said: “In the first quarter of this year, consumers have increasingly turned to our members to seek out professional mortgage advice. For example, over 80% of First Time Buyers used an intermediary - a 10% increase on the previous year. The re-mortgage markets also saw intermediary business up by 10%.
“Our members provide mortgage advice that is wholly focussed on the individual consumer’s needs. This means finding suitable products and providing high levels of customer service. Our recent research shows that 8 in 10 consumers chose to use an intermediary for mortgage advice and only 2 in 10 selected them because of cost.”
Related reading: CCJ Loan
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