New research from Alliance & Leicester has found that 86 per cent of brokers say sub-prime and near-prime mortgages help clients get on the property ladder.

The bank said that 79 per cent of brokers' clients are aware that an impaired credit history can cause them problems with getting a 'prime' mortgage and that clients understand that a near-prime or sub-prime mortgage will enable them to get on the property ladder and help rebuild their credit profile.

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said: "It comes as no surprise that brokers are seeing an increase in the number of near-prime and sub-prime cases they are dealing with.

"This market is becoming increasingly competitive with more lenders offering these specialised mortgages. It is encouraging to see that brokers say their clients know the value of these type of mortgages and that it is a good way of getting potential buyers on the housing ladder while enabling them to repair their credit history by maintaining regular payments on their financial commitments.

"Our research indicates that this market will grow and grow in the future."

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