Mortgage advisors are cautioning consumers about getting a bad credit mortgage, especially in today’s market. Many people are so desperate to get a home that they will get into a bad credit mortgage that they cannot afford. As a result, many of these bad credit mortgage holders are letting important things like insurance slide to keep up on their payments. Although there is a need for subprime mortgages, experts advise waiting for the markets to improve.
Cath Hearndon, the director of My Mortgage Direct stated, “As independent advisers, we have nothing to gain from promoting one product over another. The deal that is most appropriate for the borrower is the one we recommend. Far from the implication by Which? that insurance sold with a mortgage is akin to selling protector spray along with a pair of new shoes, life insurance is vitally important.”
“No-one buys a home without buildings insurance but plenty of people will take on the biggest debt of their life without insuring the very thing that pays for it – their life. My Mortgage Direct has already expressed concern that one in five mortgages are going ahead without life insurance.”
Related reading: Bad Credit Mortgages
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