A third of mortgage holders could be in trouble

A study by consumer research group Mintel has shown that up to one in three, or 5.5 million mortgage holders in Britain could face serious financial difficulties as a result of the US sub prime crisis, and the tougher lending climate it has created. “The focus over the last few months has very much been on sub prime borrowers, but they are only the tip of the iceberg,” said Toby Clark, a senior finance analyst at Mintel. The group claims that 9% of British mortgage holders were classed as sub prime, while a further 24% were non-standard and relatively high risk because they had irregular incomes.”In today’s more conservative lending climate, the unconventional financial situation of these homeowners means that they will now face higher repayments and increased lenders’ fees when remortgaging or moving house,” Mintel said.