National Homebuyers: 'Lender increases deposit requirements'
The effects of the global credit crunch are still being felt and the latest development may lead to financial difficulties for many.
[UKPRwire, Mon Mar 03 2008] It has been revealed that Nationwide, the UK's second largest mortgage lender, has increased the amount of money buyers need to provide up front in order to take out a loan.
The building society has announced that borrowers will need to provide a 25 per cent deposit before they can get their hands on its best rates.
"The cost of funding in the market is higher and the housing market is cooling. Like a lot of lenders we have to adapt to these changes. It's to do with the market conditions at the moment," a Nationwide spokesman told the Associated Press.
It is the latest in a long line of blows which mortgage borrowers have endured since the global credit crunch began to take effect, causing financial difficulties for many.
Fast property sale expert Julian King adds, "The continued limiting of the number of buyers able - or willing - to enter the market is having a sizable effect on the value of properties in the UK.
"Homeowners looking to sell their property to maximise its value are finding it increasingly difficult to either find a buyer or achieve close to the asking price".
Mr King is a director of National Homebuyers, the UK's leading quick house sale company that guarantees to make a formal offer to purchase any property for vendors who want a quick sale. The company also specialises in mortgage rescue solutions like the equity release styled 'Sell and Rent Back'.