Mortgage market has changed says National Homebuyers
The UK mortgage market has changed drastically in the last year, spelling bad news for homeowners and potentially leading to a surge in people seeking a fast property sale.
[UKPRwire, Wed Mar 19 2008] Moneyfacts has published research, showing that many mortgages have disappeared from the market altogether.
It is bad news for homeowners as it means that fewer buyers are able to enter the market.
This in turn could bring down prices, leading to an increase in people seeking a fast property sale.
"The dust has finally settled on the surge of lenders reducing loan to values. Borrowers with a deposit of less than ten per cent have got a lot less choice of products than a few months ago," said Julia Harris from Moneyfacts.
"In fact research from moneyfacts.co.uk shows that over the past year almost a third of lenders have reduced the maximum LTV [loan-to-value] they are prepared to offer.
"Whereas a year ago mortgages at 95 per cent LTV were the most competitive, lenders are taking a much more cautious attitude to risk; now you are most likely to find better deals with a larger deposit, say at 75 per cent LTV," she added.
Quick property sale expert Julian King adds, "First Time Buyers traditionally accounted for 45-50 per cent of all property transactions. As the lending criteria is now such that it is increasingly difficult for potential buyers to enter the market, it will deflate homesellers' expectations of a quick property sale.
"Homeowners will have to look outside the traditional estate agency route if they want to sell property fast".
Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that guarantees to make an offer to purchase any property in the UK. The company is also a leading in the Sell and Rent Back industry, where the homeowner can sell their property for cash and rent it back for an agreed period of time.