What does the term Sub-Prime or non-conforming mean?
This term is used to Lenders who offer mortgages to people who are unable to fit the strict lending terms laid down by high street lenders. High street and direct lenders have become increasingly reliant on using credit-scoring techniques to determine whether applicants qualify for a mortgage. These techniques have always excluded a large number of people who for example cannot prove their income or who may have credit problems due to County Court Judgements, mortgage arrears or IVAs or who may have been declared bankrupt in the past.
