Brokers predict bleak future for mortgage market says National Homebuyers
Mortgage brokers are expecting the mortgage market to tighten up, with 85 per cent expecting the credit crunch to make it harder for people to find a mortgage.
[UKPRwire, Thu Apr 03 2008] A survey by independent risk consulting company Protiviti has highlighted the opinions of brokers, nine out of ten of which expect mortgage products to be pulled this year, something that could leave homeowners looking to move needing a quick house sale instead.
"Banks and building societies are not surprisingly reviewing their lending criteria and overhauling their risk management programmes in the light of the current market and economic situation with the aim of reducing their exposure to bad debt," said Andrew Clinton, managing director of Protiviti's financial services industry practice.
Two-thirds of brokers expect mortgage lenders to stop offering new mortgage products this year in the wake of the economic situation.
Around eight out of ten (79 per cent) expect the gap between the Bank of England base rate - currently 5.25 per cent - and lenders' rates to widen.
"The continued limited number of buyers will enhance the pain felt by people needing a quick property sale" says National Homebuyers director Julian King. "Those in financial difficulties need to consider a quick sale of their property to get finances in order.
"For most, using an estate agent will not be the best route, as the cost of Hips and commissions along with the delays and liklihood of the chain collapsing at least once will mean further problems for the homeowner".
Mr King is a director of National Homebuyers, the UK's leading fast property sale firm. The company is also the UK leader in the Sell and Rent Back industry.
Sell and Rent Back is where the homeowner can sell their property, but rent it back for an agreed period of time.