Tuesday, March 18, 2008

The Times not ramping for a change

FTBs hit as lenders pull the plug

Harsh new conditions set by banks may leave many borrowers unable to get a mortgage, after the sudden demise of Bear Stearns fuelled concerns that the credit crunch will prove deeper and more enduring than was first thought. Even "prime" mortgage borrowers may be hit with higher interest rates in months to come as banks become increasingly jittery and attempt to shield themselves. Borrowers who have secured pre-approval for a mortgage are finding offers suddenly withdrawn. On a £150,000 Nationwide home loan, a borrower now needs a £37,500 deposit to get its most competitive rate of 5.68%. A month ago the same borrower would have required a deposit of only £15,000 (10%) to obtain the same rate.

Posted by little professor @ 01:09 AM (631 views)
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3 thoughts on “The Times not ramping for a change

  • “Harsh new conditions set by banks may leave many borrowers unable to get a mortgage,…”

    They don’t know how lucky they are.

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  • Somersetinlondon says:

    I have an image in my heading of thousands of lemmings heading for the cliff with glee, only to find that the mortgage lenders have built a wall at the edge. Any FTB that wants to get in to the property market at this time needs a serious talking to. It is fortuitous that they are, in some cases, being prevented from making the mistake of their lives. If we all just showed some common sense, restraint and unity by not rushing to buy, we would see prices come down as the bottom end of the market dried up. Same goes for rent. I told my landlord to stick it when he tried to raise my rent 20% after 1 year in December because “the estate agent told him prices had risen that much on my road in the last year”. It was on the market for 11 or 12 weeks after we vacated – more of a loss to the BTL than raising the rent realistically and fairly. But the estate agent gets a new load of legal fees, itinerary fees etc etc…

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  • Judith Heywood talking rubbish again.

    I love the way they try to politicize the lack of cheap credit by saying that it affects first time buyers.

    The fact is, the people this really kicks are current homeowners.

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