National Homebuyers: 'Mortgage market meltdown'
The UK mortgage market appears to be in freefall, potentially leading to a surge in people seeking a fast property sale.
[UKPRwire, Wed Feb 27 2008] It follows the news that four of the six UK lenders who were offering 125 per cent mortgages have decided to remove the products.
Now Moneyfacts is reporting that even more products are being removed from the shelves.
It is bad news for homeowners and may lead to more people seeking a fast property sale as fewer buyers are able to enter the market, potentially leading to further price falls.
"In November 2007 41 of the 123 prime mortgage lenders were offering mortgages at 100 per cent LTV [loan to value] or more. Since then almost one third of those lenders have withdrawn their products from the market leaving only 28 providers," revealed Moneyfacts analyst Julia Harris.
"Those that still operate in this market include those that only lend 100 per cent or more to professionals or as part of specialist arrangements such as the shared ownership scheme.
"This is yet another example of lenders continuing to tighten their belts even further in what has become a vastly different mortgage market from this time last year," she added.
Julian King of National Homebuyers says, "It is increasingly difficult for vendors to achieve a quick sale on the open market as the number of potential buyers is very limited.
"Homeowners who need to sell property quickly are advised to research other options available to them. Fewer buyers means it will take longer to sell property in a falling market. For many a quick property sale through a company like National Homebuyers is their only solution".
National Homebuyers is the UK's leading fast property purchase firm. The company is also the leader in the Sell and Rent Back market.