Although things may appear bleak in the bad credit mortgage market, there are experts that are holding out hope that the worst is over. Although fees and rates for bad credit mortgages are still quite high, there is hope in the industry that things will soon change. That offers small comfort for those that are trying to keep current on their bad credit mortgages, but there are a few signs that the markets are getting better.
“Over time the mortgage market should continue to improve from its current position. The number of products will steadily increase and rates will lower with increased competition between lenders. However, it will be a while before lenders regain a healthy appetite to lend with the maximum LTVs on offer largely determined by the future decline in property values,” commented Michelle Slade of Moneyfacts.
She added, “With all the above said it is highly unlikely that we will ever get back to the same levels that we were at a year ago. In the last month numerous lenders have cut rates, so borrowers looking for a new deal can take some comfort from the fact that the situation is steadily recovering.”
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