If you have a poor credit record, low earnings or have recently moved to another country, you may be classed as “sub-prime” by lenders if you apply for a loan or a mortgage.

There’s no escaping this Mark of Cain even if the only flaw in your situation is that you have recently taken a new job or become self-employed.

Banks and mutual lenders treat sub-primes in a straightforward fashion — with high interest rates. Indeed, the unfortunate sub-prime will often have to approach a specialist lender to negotiate their loan.

The recent falls in stock markets around the world were partly caused by a rise in sub-prime defaults in the U.S. following 17 rate hikes in two years. Many had taken out second mortgages to pay off other debts and were unable to meet repayments.

However, these cases should be set in perspective against a background of very low levels of mortage default in both the U.S and the UK.

If you think you may be assessed as sub-prime, try going to standard lenders first and explaining any mitigating factors. For example, that new job may represent a substantial increase in salary.

Should you be knocked back by the big boys despite the good news, the bad news is that you may have to bite the bullet and pay more than the average to get a mortgage.

Once the conditions that make you sub-prime have been relieved, however, you should remortgage at normal rates as quickly as you can.