Sub-prime Borrowers
Sub- prime borrowers are not always the poorest individuals in society. These individuals are those who usually have country court judgements or other arrears on their credit history.
Most of these individuals are back on track with their jobs and payments. They just needed to have a helping hand when they first began buying their home. The bad credit history has made it difficult for them to get a cheap loan as they were considered higher risk. This meant they could be more vulnerable to certain instances.
Experian in their research listed a number of sub-prime households. Of the 200 seats with Parliamentary constituency all, but 14 of the worst areas are held by Labour. There is also risk in other areas. David Blunkett’s region was the biggest risk. This area had 72.2 percent of all households in the area in the sub- prime range.
This means that there were about 23,000 homes that matched the profile created for the study. As mentioned above this doesn’t mean they are the poorest or that they will default. It just means that the area is most likely to have mortgages and loans, and that these loans will be in the sub- prime range over other areas.