Some subprime mortgage borrowers pay extra for their poor credit report - 2005-04-03
There are two lending classes out there -- the prime market (people who can get loans at the best rates) and the subprime market (people who are offered loans with higher interest rates than prime or "choice" customers).

True, the subprime lending market has permitted many credit-challenged people and those without a credit history to buy homes. Prepayment penalties increase the risk of mortgage foreclosure in subprime home loans, even after controlling for the borrower's credit score, loan terms and varying economic conditions.
Read the full story at Record-Journal

Interest-only mortgage loans: are they worth the gamble? - 2005-04-03
Is talking out an interest-only mortgage a courageous move or a bad move? Industry figures reveal an increase in the number of homebuyers turning to interest-only loans again, after years of declining interest.

Figures from the Council of Mortgage Lenders (CML) show that the number of interest-only first-time-buyer mortgages has crept up by 5 per cent over the last two years, while broker My Mortgage Direct says that 35 per cent of its clients have opted for interest-only over the last year.
Read the full story at Guardian