The amount of CCJ loans that are continuing to go into default is rising and as a result, few banks are willing to offer this type of loan. There are many allegations swirling about lending practices and CCJ loans and as a result, there are few banks willing to get into this market at this time. As the CCJ loan market dries up, the rental market may experience a bounce as more people try to seek affordable housing.
Sue Edwards Head of Consumer Policy at Citizens Advice said: “We welcome the findings of the FSA’s research on lenders’ mortgage arrears and lending practices, which mirror CAB clients’ experience. Our 2007 evidence report showed that in some cases lenders have taken borrowers to court without exploring all the other options available to address the arrears resulting in excessive costs, stress and worry for borrowers. This could be avoided if lenders had acted in accordance with the FSA rules that govern arrears management practices. Bureaux also see cases where it appears that the lender had taken little or no account of the borrower’s ability to repay the mortgage. The borrowers got into mortgage arrears and faced repossession.”
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