Friday, August 28, 2009
Mortgage drought for FTBs thanks to Basel II (?)
'The â€œBasel IIâ€ (pronounced â€œbarlâ€), an international finance directive introduced in January last year, is the main reason that buyers with small deposits are being turned down for home loans. â€œIt looks to everyone like the credit crunch is to blame for the lack of deals for first-time buyers. While this has obviously had some impact, Basel II is also very relevant,â€ says Ray Boulger, of John Charcol, the mortgage broker.' The Times reckon that due to Basel II regulations, FTBs might require a 60% deposit to get the best rates compared with 40% right now.