Mortgage Lending Industry
Still Lenders tighten mortgage
While many of us may think the worst is over, when it comes to trouble home loans, recent reports suggested that many lenders continue to tighten their lending criteria, making it increasingly difficult to get funding for a home and increase the risk for homeowners who are on cheap fixed rate mortgage deals due to come to an end.
The global credit crunch that has devastated across the UK have led to turmoil in financial markets and has made it difficult for people to get funding. In a recent report, industry experts have warned that many lenders have now tightened up more on their lending criteria, with an increasing number of lenders are struggling to secure the financing they need to finance their lending.
Those seeking a loan are likely to face real problems if they have very good credit and able to put down a substantial deposit under industry officials. Within the last few days by a number of lenders have further tightened their lending criteria, and that means that things are set to more and more difficult for those who are looking for a mortgage.
Brokers reported that anyone looking to take a new mortgage should act fast to avoid missing out on competitive deals, as many lenders are taking their most competitive mortgage deals off the shelves very quickly, limiting access to them. Many other lenders have reserved their most competitive deals for those who could make a larger deposit – in some cases, forty percent or more.
Some smaller building societies have had to put an end to new loans at the moment, as they continue to try to work through problems in securing funding in the wholesale market the money markets. Many others have raised the amount of deposit that they require, with most requiring more than the traditional five percent.
First-time buyers could suffer as a result of this situation, because many can not afford to put a large deposit and this could mean that they are not able to get a mortgage or want to pay a much higher rate in the form of punishment. Those currently on the cheap fixed-rate deals are also likely to suffer if their fixed rate is due to come to an end soon, as many might struggle to find another suitable, cheap Mortgages.
About the Author
Reno Charlton, award-winning writer, shares her financial expertise as a contributing columnist for Credit Card Comparison Online and Personal Loan Comparison Online.