Sub-prime definition (Google):
Several lenders are launching home loans for those with poor credit histories, despite the products being blamed for the crash.
Lenders are targeting people who have faced serious financial problems including repossession and bankruptcy – as well as those with more minor blots on their records – for the mortgages, which come with interest rates as high as 8%.
Bluestone Mortgages, a lender part-owned by Australia’s biggest investment bank, has just launched in the UK, following hard on the heels of another Australian-owned business, Pepper Homeloans, which similarly caters for those who have experienced a “credit event” such as missing payments on a previous mortgage.
Another recent arrival is Foundation Home Loans, which offers buy-to-let mortgages to people who have had financial problems.
On the other hand,
Matt Andrews, managing director of Bluestone Mortgages, said: “We don’t like the term sub-prime – it implies these customers are somehow inferior to prime borrowers, which they are not.
There’d be an interesting all-star cast movie that will be showing in December regarding the recent 2008-2009 Great Recession regarding the sub-prime mortgages.
Movie Title: The Big Short
YouTube Link (https://www.youtube.com/watch?v=LWr8hbUkG9s)