Sub-Prime loans are a way of lending to businesses or individuals who do not qualify for "prime" rates. (those rates reserved for borrowers with virtually blemish-free credit histories). The overall cost for comparison is 7% APR.

Subprime lending refers to the extension of credit to persons who are considered to be higher-risk borrowers. In mortgage lending terms, their credit ratings are "B" or "C" rather than "A" or "A-".

N.B. Your home may be repossessed if you do not keep up repayments on your mortgage.

Subprime loans are made to individuals who have the means of repayment - but who, for any number of reasons, are unable to qualify for a traditional loan. Even if you have or have had a bad credit history, such as CCJ's or defaults, it does not mean that you can't get a mortgage. For more information, please contact us on 0191 488 8445 or use this email link. office@hrcgroup.net * Moneyfacts OCT 2005.