Tuesday, July 3, 2007
Good news… “only” 15% of UK mortgages are subprime!
The Council of Mortgage Lenders points out subprime mortgage lending by its very nature is riskier than conventional mortgage lending. It also notes there are fundamental differences between the subprimemarket of the US and that of the UK, where lenders have not relaxed their lending criteria so aggressively as in the US. US, loan-to-value ratios - which show the loan as a proportion of the value of the property - have been as high as 100 per cent. In the UK, only 15 per cent of lending is at 90 per cent or more. So prudent!!