Subprime home loans market should take heed of US fiasco
Contrary to previous reports, it has recently been announced that the sub prime home loans market in the UK could be heading in a similar direction to that in the US.
The housing market in the UK is finally showing signs of declination. The US has recently experienced a collapse in the sub prime market due to house prices falling rapidly leaving many consumers in heavy debt. Analysts predict that the UK market could go the same way, the consequences of which could be disastrous for lenders.
The UK market has had its first casualty with sub prime lender Kensington financial issuing a long-term profit warning. Kensington are specialists in helping people with bad to severe credit history source home finance.
New century financial, the American sub prime specialist has fallen into bankruptcy this week. Analysts say this should be a wake up call to the UK market and lenders should take heed.
