Why subprime has returned

This article is part of
Guide to the return of subprime

“Though the number of CCJs registered has increased over recent years, the average value has fallen from £3,600 in 2008 to £1,700 and has largely been driven by an increasing speed in which phone and utility companies are registering defaults for small amounts.”

Mr Duncombe recognises the rise in the number of self-employed does not mean that these customers are any less likely to meet their financial commitments. 

“Instead, it might be that they draw their income from different sources, such as dividends, or might have experienced a minor credit event in the past, such as a missed phone bill. As a result, there is now a need for lenders to service this growing sector by taking a more manual, attentive approach to underwriting.”