Lower rates ‘restricted to those with spotless credit rating’

Nine out of the 12 leading mortgage lenders in the UK have recently slashed rates, yet debt-laden people may still be missing out on the savings, it has been claimed.

Head of mortgages at Moneysupermarket Louise Cuming said that while borrowers could be encouraged by the positive news, lenders were “cherry-picking” who they offered debt help to.

“Good news is restricted to customers with a spotless credit rating and a large deposit … meaning the gap between the ‘haves’ and ‘have nots’ in the UK is set to widen further,” she commented.

In the midst of a mortgage crisis, the industry had recognised that rates were too high, she added.

Meanwhile, research from Abbey found that fixed-rate mortgages are experiencing an increase in popularity. Approximately 52 per cent of respondents said they would now opt for a fixed deal compared with 35 per cent six months ago.

By Jamie Price