'Borrowers will need larger deposits in 2008'
Financial institutions are more likely to insist on larger deposits from potential buyers this year, it has been claimed. According to the Royal Institution of Chartered Surveyors (Rics), the slowdown in the housing market is set to continue during the coming months. This, coupled with concerns over the credit crunch, will lead banks and building societies to tighten lending criteria, and insist on larger deposits from potential borrowers, Oliver Gilmartin, a senior economist at Rics, said. "A more sluggish mortgage and housing market is set to continue in the near term, as financial institutions remain on high alert as to lending exposures. "Even the few undeterred by market conditions will to need to find even larger deposits to take the first step on the property ladder," he explained. The shoring up of lending criteria is set to hit first time buyers, who are already struggling to raise deposits hardest. Mr Gilmartin's predictions come as data from the British Bankers Association showed that mortgage approvals during December hit an all time low.
Share this..
Related stories
Danny Alexander reveals public sector job loss numbers
Danny Alexander, the Chief Secretary to the Treasury, has given opposition parties and the financial press something of a bonanza today having been photographed reading a draft copy of the comprehensive spending review. Sharp eyed photographers noticed that a figure of around 490,000 had been penned into the report citing the potential number of job losses in the public sector. This has caused dis...
Read MoreGordon Brown demands wartime spirit from UK consumers
Gordon Brown has today issued a rallying call to the UK population to show some wartime spirit in these very testing times. However, despite a number of public appeals it would appear that the general UK consumer is lacking in both confidence and ready cash to make any significant impact on the economy at this moment in time. This is the latest attempt by Gordon Brown to instil a "must do" attitud...
Read MoreWhat to do if…I have gone over my overdraft limit
01/09/2015 We can all make mistakes when it comes to banking from time to time. Whether it’s due to an emergency or simple carelessness, we are all human. If you have gone over your overdraft limit, or found yourself in an unauthorised overdraft, there are certain steps you should take to minimise the damage.
What is an overdraft?
An overdraft allows you to borrow money...
Read MoreUK employment hits record high
The total number of people in full employment in Britain has reached its highest level since records began.Government figures show that in the three months ending May there were 29.1 million people of employable age in work, an increase of 180,000 on the year.According to the Office for National Statistics (ONS) the total jobless in the UK fell 35,000 during the same period to 1.66 million.Peter H...
Read MoreBills not tiny for today's tots
Although it is well-known that raising a child is an expensive business, new research has shown that proud parents cough up an average of £2,628 just to build their newborn the perfect nursery. According to Halifax Home Insurance, parents are splashing out on Plasma TVs, designer furniture, signed football kits and other luxury items just to give their baby the best start in life. Babies in Wales...
Read More