Getting a mortgage is getting more and more difficult
April 16, 2008
Most of has seen the damaging effects that the global credit crunch has had on the housing and mortgage sectors, and over recent months things have become more and more difficult for both lenders and borrowers. Lenders have found it increasingly difficult to get the finance that they need to fund their mortgage lending operations, and this has resulted in far tighter credit conditions, higher mortgage borrowing costs, and a far smaller choice of mortgage products.
All of this spells bad news for prospective borrowers, as it reduces their chances of getting an affordable mortgage deal. First time buyers are really suffering as a result of higher deposit required from lenders, and increased mortgage borrowing costs, as well as the withdrawal of popular products such as 100% mortgages. In addition to this those with poor credit are also suffering, as lenders are far more cautious and many are reluctant to take any sort of risk.
One industry official summed up the current situation in the mortgage market, stating: “Conditions in the mainstream mortgage market are now rapidly deteriorating at a frightening speed, with lenders changing their pricing and/or criteria at the fastest pace in living memory, and probably ever.”
Many lenders have been changing their deals and making it harder or more expensive to get a mortgage, and some have been actively trying to put off new customers by doing this simply because they cannot afford to keep up with demand. Experts state that it is getting increasingly difficult to get a mortgage, and predict that the situation will continue to get worse for some time
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