Low deposit mortgage agreements very scarce
It has been revealed that a great number of mortgage providers in the UK are rejecting low deposit applications with some estimating as many as 90% of such applications are turned down. Despite the fact that the industry would like us to believe competition in the mortgage market is on the increase and first-time buyers are now coming back to the fore, it seems very much to be the opposite. So when will the market turn for first time buyers?
In all honesty we are unlikely to see any significant movement in the first-time buyer market until we see a significant improvement in the UK economy and the UK public sector. The risk of default in the short to medium term on low deposit mortgage arrangements is very difficult to justify and despite the fact the government is pushing for more liquidity in this particular area there is a need to be more "conservative" than reckless.
The UK mortgage arena has become very fragmented over the last few weeks with a great deal more liquidity away from the first-time buyer market. How long this will continue remains to be seen as first-time buyers are becoming more and more concerned about a reduction in opportunities to climb onto the housing ladder.
Share this..
Related stories
UK Banks ignore government's mortgage protection scheme
Despite being launched in a blaze of glory a few months ago, the UK government's mortgage protection scheme only came into operation yesterday after significant delays and infighting. It was also revealed that some of the largest banks in the UK, despite helping the government create the scheme, have now refused to offer the service to customers.
You may recall the scheme gives thos...
UK mortgage lenders set to experience more pressure
As the UK government bond market continues to rise, with bond yields having fallen to around 0.785%, there are growing hopes that UK mortgage lenders will start to reduce their rates. It seems that more and more investors have now come round to the idea that UK base rates will remain at 0.5% for some time to come and ultimately the cost of finance in the UK should fall accordingly. But will UK mor...
Read MoreIs now the time to fix your mortgage?
This is a question we have asked on numerous occasions and ultimately it is one which does not have a simple answer. Over the last few weeks we have seen a number of mortgage providers increase the rates they charge and then this week we saw the Nationwide reduce its rates by an average of 0.5%. These very mixed signals are causing problems with regards to UK homeowners who are not sure whether to...
Read MoreWhat now for UK mortgages?
It will come as no surprise to see the warning flags starting to appear across the UK mortgage sector. Funding is quickly disappearing from the money market, the housing market is in a sharp decline and nobody wants to buy a home today. Mortgages are now sure to increase as the cost of debt on the money markets is sure to balloon over the next few days and weeks.
We have already s...
Interest rate falls will "ease the pressure" of credit crunch
With mortgage lenders "tightening their criteria" as a result of the global credit crunch, it is becoming "more difficult" for borrowers to obtain adverse credit mortgages, the Council of Mortgage Lenders (CML) said However, CML spokesperson Sarah Robson predicted that with interest rates predicted to fall from 5.75 per cent to five per cent by mid 2008, the situation could well improve.She explai...
Read More