City Watchdog Probes Money Lenders Over High Risk Mortgages.

A ‘subprime borrower’ is a person with a bad credit rating. This can range from someone who has missed a few credit card payments to someone who has been declared bankrupt. For banks and mortgage brokers, these types of customers are lucrative because the risk attached to them is justification for charging sky high interest rates. These customers are so lucrative that the market for them is worth £30 bn a year and many new companies are getting into the market. Figures show t...

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