Mortgage lenders targeting unreliable borrowers

Mortgage lenders have become more flexible in lending money to people with bad credit ratings, according to a report from market analyst Datamonitor.

The report reveals that mainstream lenders are now less choosy in who they loan money to, with less self-employed workers and people with bad credit ratings being denied mortgages.

The level of lending in this so-called 'non-traditional' market is growing at twice the rate of the standard market

"The increased saturation of mainstream markets, whether credit cards or mortgages, has led to a number of mainstream lenders operating in the non-standard segment," explained the report's author, Karina Purang.

"Consequently, the non-standard sector is set to become very competitive in the near future."

Ms Purang added: "The non-standard population in the UK has more access than ever to credit as mainstream lenders grow their presence in this segment due to the attractive growth opportunities it offers.

"The increased involvement of mainstream financial institutions into the non-standard sector is definitely good news to the non-standard customer."