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
- Mortgage lending restrictions put in place by smaller building societies A recent report has shown that the global credit crunch is also taking its toll with smaller building societies as well as larger banks and lenders, with a number of smaller building societies reporting that
- 2008 to be a tough year for mortgage lenders Experts have stated that 2008 is going to be a very tough year for mortgage lenders in the UK, stating that the effects of the credit crunch, which has decreased liquidity for lenders, will make
- Sharp fall in low deposit mortgages According to recent reports there has been a sharp fall in the number of low deposit mortgages that are available on the market, making the situation increasingly difficult for first time buyers who want to
- Government moves on mortgage lending and repossessions Following the pre-budget report, it has been announced that the government is to set up a new review panel that will monitor lending to businesses and consumers. The announcement came from the Chancellors, Alistair Darling,
- More and more people turn to Provident Financial The effects of the credit crunch in the UK has made it increasingly difficult for consumers to get finance of any sort, and an increasing number of lenders are taking a firm stand when it
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