Credit crunch effects only just being felt says National Homebuyers
There may be more people seeking a fast property sale as a result of the withdrawal of 100 per cent mortgages from the mainstream market.
[UKPRwire, Wed Apr 23 2008] That is according to Moneysupermarket, which said that new buyers in particular are being hit hard by the credit crunch.
The firm pointed out that the global credit crunch is only really beginning to impact on people now.
With that in mind, there may be many people seeking a fast property sale in order to leave the market before it gets worse.
"The term 'credit crunch' has been bandied around the media for months, but it's only starting to hit home for Joe Public now. It's enough to send a chill down anyone's spine," said Louise Cuming from Moneysupermarket.
"The problem is two-fold – not only are there fewer mortgages available generally, but the chances of being accepted are also a lot slimmer.
"Twice as many mortgage applications to our broker team were declined in the past three months, compared to the first half of 2007. But if all lenders start to turn their backs on consumers, this will lead to greater economic calamity over the longer-term," she continued.
Chris Newman of the UK's largest consumer-facing property firm National Homebuyers adds, "The lack of mortage products must prompt the Treasury to get involved. But even if there is a 'forced' happy medium to assist buyers in the short-term, this will not prevent the lenders from increasing costs to those who are unable to supply a sizeable deposit.
"Homeowners looking to sell their property who are met with a lack of available buyers are encouraged to look at alternatives to selling on the open market".
Mr Newman is a director of National Homebuyers, the UK's leading fast property purchase firm. National Homebuyers deals with tens of thousands of property sale enquiries each month and is also the UK's leading provider of Sell and Rent Back mortgage rescue solutions.
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