News provided by Decision Homebuyers, a leading UK property company providing a quick and simple solution for selling your home, no matter what the condition.
[UKPRwire, Fri Dec 28 2007] Borrowers are facing difficult times as mortgages and other types of credit are increasingly harder to come by.
As banks become more reluctant to lend, as a result of having to write off huge sums, consumers are starting to feel the credit crunch, a trend which seems certain to continue through the new year.
In October, the figure of gross mortgage lending was £32.4 billion, a 6% rise on the previous month but a sharp fall of 17% in the actual number of mortgages lent, and a fall of 37% over October 2006. This indicates that first-time buyers (FTBs) are finding it more difficult to get on to the property ladder. Many surveyors have reported a falling number of enquiries from new buyers, while lenders observe that FTBs are stretching themselves to the maximum to get a mortgage.
Difficulties will also face those who currently have tracker mortgages that are due to switch to higher standard variable rates (SVRs), as well as those currently on fixed-rate mortgages that are coming to an end. For households in these categories, the end of their tracker or fixed-rate deals could mean an average monthly increase in mortgage repayments of around £140.
Besides mortgages, other types of credit are also becoming more difficult to obtain as banks are less ready to lend. According to the online consumer advice organization uSwitch.com, 19% of people applying for a new personal loan in the past three months were turned down, and 38% of those who had applied for a new credit card in that period were also rejected.
“As banks are forced to drastically reduce their lending,” said Lawrence Smith of Decision Homebuyers, “customers will find it increasingly difficult and costly to borrow, whether for mortgages or other forms of credit.”
For press inquiries, please contact Phil Rendall on 020 7099 9026.
Email: phil@dhbuyers.co.uk
Web: www.decisionhomebuyers.co.uk
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