Borrowers coming off fixed-rate sub-prime mortgages face being unable to find a new deal for their homes, an expert has warned.
Julia Harris, analyst at financial comparison site Moneyfacts.co.uk, commented that in less than a year, the sub-prime market grew, expanded and "is now wilting fast".
She said sub-prime homeowners leaving their deals could be in difficulties "especially if their financial position has not improved sufficiently to allow them back into the prime market".
Earlier this month, Bob Sturges, of sub-prime lender Money Partners, told the Times those coming off their sub-prime fixed-rate deals face higher rates and if they cannot afford them, will have to sell their homes.
"This will affect tens of thousands, if not hundreds of thousands of people," he commented.
Many households will be looking to reorganise their finances in order to meet potentially higher mortgage costs and keep their homes.
There are a number of options open to those struggling to manage the cost of their borrowing, including individual voluntary arrangements and the services of a debt management company.