Mortgage market still reeling according to National Homebuyers
The global credit crunch continues to affect the UK mortgage market and the latest evidence of this may lead to an increase in the number of people seeking a fast property sale.
[UKPRwire, Wed Jan 16 2008] Moneyfacts has published figures revealing that many lenders have the maximum loan to value (LTV) they are offering.
It means that borrowers have to save more cash before taking out a loan, potentially diluting the number of people entering the market.
This is bad news for home sellers and may lead to a surge in people looking to make a fast property sale.
"Moneyfacts.co.uk has found that since the beginning of December 11th mortgage lenders have reduced the maximum loan to value they offer on some or all of their mortgage range," said David Knight, mortgage analyst at the firm.
"This is an understandable about turn from the lending strategies we have witnessed over the last five years or so, when lenders pushed LTVs to highs of 130 per cent, with 95 per cent products considered the norm.
"This more cautious approach of lenders starting to reduce their exposure to the property price fluctuations shows that they have a real concern over the future of the UK housing market," he added.
Julian King of National Homebuyers adds, "Many more homeowners will feel the effect in 2008, particularly those coming off their fixed-rate mortgage.
"The ability for first time buyers to get on the ladder is hugely restricted. In turn this means less potential buyers for properties across the UK and therefore the buyer is in control of your property price" says Mr King.
Mr King is a Director of National Homebuyers, the UK's leading fast property sale firm that guarantees to make a cash offer to purchase each property quickly, regardless of its condition or location. The company is a leading provider of Mortgage Rescue Schemes such as Sell and Rent Back when the homeowner can sell their property for cash, but remain in their home as a tenant.