Mortgages - Surviving the Credit Crunch

The ongoing credit crunch has hit hard every sector of the UKs financial market, especially mortgage lending. As lenders and building society’s are finding it harder to get hold of finance to back up their lending, more and more consumers are feeling the credit crunch’s effects.

With 11,000 less mortgages on the market than roughly this time last year, prior to the credit crunch – finding an affordable mortgage has become increasingly difficult.

Many popular high street lenders have made considerable interest increases to buyers who have less than a 25% deposit, with 100% mortgages being a thing of the past.

With around 30% of borrowers requiring a mortgage for at least 75% of the property’s value, such lending decisions are going to make it difficult for buyers to finance their new home; this is especially true for first time buyers.

Over the years the majority of lenders have relied heavily on the wholesale financial markets to fund their lending instead of using their savings base. Also, many of these lenders where pushed hard by share holders to obtain the largest customer base, and thus increase profits. It is these lenders that are being hit the hardest by the crunch.

Lenders who haven’t relied so much on the financial markets, namely building societies, were for awhile able to offer some of the best mortgage deals. However, the rush in custom and limited savings base has put many of these lenders in the same place as others.

If you are a first time buyer or intend on remortgaging than it’s more important than ever that you make the proper provisions and invest time in thoroughly researching the market.

To begin with you should take a good look at your credit history, ensuring there is nothing that might cause a lender to question your credibility. Secondly, take the time to save up a large deposit and try to ensure your future will be financial secure for the future.

Article Directory: http://www.everyonesarticles.com

Following these steps should ensure you get the best deal on a mortgage. As mentioned, today’s mortgages market is considerably more stringent than it has been so comparing mortgages online should help ensure you get the most competitive quote.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated