UK mortgage standards safer than U.S. but slipping

UK mortgage standards safer than U.S. but slipping


July 17 (Reuters) - UK lenders have been more conservative so far than their U.S. counterparts in providing mortgages to those with less than perfect credit histories, though standards are on the slide.


Both Citigroup and S&P estimate the UK's outstanding "nonconforming" mortgage bonds -- a broader definition that includes borrowers with poor credit histories and those who do not meet lending criteria for other reasons -- at about $70 billion, compared with $565 billion of U.S. subprime bonds. More...

Mortgage Applications Rise

Forbes: Applications for U.S. home loans rose slightly last week, an industry group said Wednesday.


The Mortgage Bankers Association said its weekly mortgage index, which measures the volume of applications for loans to buy or refinance homes, rose 0.1 percent on a seasonally adjusted basis. An increase in new home loans outweighed a decrease in applications for refinancing mortgages.


Mortgage lenders have been tightening lending criteria in recent months after a surge in defaults and foreclosures. Lenders catering to home buyers with weak, or subprime, credit, have seen a spike in loan defaults, and many have gone bankrupt or sold off their subprime businesses. More...