According to one of the UK’s leading sub prime home loan providers, any individual who has defaulted on credit repayments in the past or has become indebted as a result of mismanaged finance, may struggle to attain a home loan in the not to distant future.

A spokesperson for the organisation stated that many lenders who operate within the bad credit arena, may soon start to retract a large proportion of their products thus leaving those consumers who have struggled with debt in the past, with little place to turn.

One of the countries largest sub prime mortgage providers (Kensington financial) announced a string of profit warning in the early part of 2007. Since then, a number of other high profile providers have systematically withdrawn their products, all of which were targeted specifically towards the FTB market. Some of the more controversial products such as the 125% mortgage were withdrawn almost as quickly as they were launched.

The sub prime market has been the cause of much concern of late, following on from the collapse of the US sub prime industry, which noted the fall of one of the countries largest credit providers. Hostile economic conditions in the UK are causing many firms to tread with caution, lest they suffer the same fate as our cousins across the pond.