FTBs warned over tightening mortgage market
Mon 14th Jan, 16:48:28 GMT
First-time buyers considering taking out a high loan-to-value mortgage may want to explore other options as providers become increasingly reluctant to allow people to borrow high sums, it has been suggested.
With the impact of the credit crunch still being felt and speculation that house price growth is to cool this year, many lenders have already adjusted their mortgage ranges.
According to personal finance site moneyfacts.co.uk, ten firms have withdrawn their 100 per cent loan-to-value mortgages since last June, with others only granting them to people they feel are good risks, such as those with professional qualifications or who have someone willing to guarantee the loan.
Since the start of December, 11 lenders have reduced their maximum loan-to-value deals, something David Knight, the website''s mortgage analyst, suggested that buyers should bear in mind.
"Anyone looking to take their first step onto the property ladder should carefully consider the risks of taking a high loan-to-value product."
"Plan and save for a deposit, as not only will it offer a buffer against price fluctuations, but your interest bill in the long term will be much lower."
With the impact of the credit crunch still being felt and speculation that house price growth is to cool this year, many lenders have already adjusted their mortgage ranges.
According to personal finance site moneyfacts.co.uk, ten firms have withdrawn their 100 per cent loan-to-value mortgages since last June, with others only granting them to people they feel are good risks, such as those with professional qualifications or who have someone willing to guarantee the loan.
Since the start of December, 11 lenders have reduced their maximum loan-to-value deals, something David Knight, the website''s mortgage analyst, suggested that buyers should bear in mind.
"Anyone looking to take their first step onto the property ladder should carefully consider the risks of taking a high loan-to-value product."
"Plan and save for a deposit, as not only will it offer a buffer against price fluctuations, but your interest bill in the long term will be much lower."
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