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Mortgage market 'to get steeper' for less well-off

Recent events affecting the global credit market will mean that the less well-off will find it harder and harder to find a mortgage, according to a spokesperson for Credit Action, a charity offering financial advice and training.The collapse of the sub-prime market has had effects on the credit climate around the globe, with many lenders now opting to be more cautious in who they hand out cash too.A spokesperson for the charity said: "There is no doubt that the less well-off will find it harder to get mortgages."However, she added that the providers of the so-called door-step loans - which are a common option among the less well-off - would not be so badly affected by the credit crisis, because they work on a very different system to bank loans and mortgages.She said of door-step loans: "It does not affect your credit rating but they are not the cheapest of loans. Partly there is a tradition that some people have always gone to these people for their loans. "Some people like them for their collection and payment methods, with the agent that comes round. "The average Provident loan is very small, so you borrow a small loan for a short term and you know that you have to pay so much back every week for the next six months. People find they can budget for that."

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