Northern Rock offers 10 percent mortgage
February 28, 2011
Over the past few years getting a mortgage has become increasingly difficult for first time buyers, not least because of the level of deposit that is being demanded by the various lenders. However, according to industry officials there is some light at the end of the tunnel, and some buyers may now find that they can get a mortgage with a far smaller deposit than they may have anticipated.
For many first time buyers the financial climate left them with little choice when it came to mortgages, with many lenders wanting a deposit of at least 15 percent. However, officials have said that the restrictions in the market seem to be easing and borrowers are now able to find more mortgages that offer a 90 percent loan to value.
Northern Rock is a financial institution that will stick in many people’s minds for being the first major UK victim of the global financial crisis back in the latter part of 2007. It became the victim of the first run on a UK bank in over a century and became the first of the banks to be given a bailout by the government. However, in a turn of events this lender is now supporting first time buyers with the availability of a 90 percent loan to value mortgage.
This will come as good news for first time buyers, who notoriously find it difficult to raise a deposit because they have no previous property from which to take equity. It is hoped that more and more lenders will follow suit and will start to offer mortgages with lower, more affordable deposits to help get first time buyers back into the market. This comes after reports that many people have been forced to rent property because they cannot get affordable mortgage finance.
- Northern Rock borrowers running into financial problems Recent research has suggested that Northern Rock mortgage customers may be running into financial problems at a far faster pace than other borrowers, with repossession figures showing that a large proportion of homeowners that have
- Did FSA fail to do enough over Northern Rock problems? The Financial Services Authority, the UK's financial regulator, which was set up seven years ago, has responded recently after accusations that the agency failed to do enough when dealing with the Northern Rock crisis back
- Equity release sector slumped last year According to recent reports the Northern Rock crash from last year resulted in the equity release sector in the UK taking a huge knock last year, with the take up of equity release slumping. Data
- Borrowers accused of late mortgage payments by Northern Rock Thousands of mortgage payers have been falsely accused of failing to pay their mortgage on time by ailing high street bank Northern Rock. The Rock, which recently became the victim of the first run on
- Bank of England claims that many will be able to cope with increased repayments The Bank of England has stated that whilst many homeowners are soon due to come off cheap fixed rate deals over the coming months, many will be able to cope with the rise in repayments.
Comments
Got something to say?