Saturday, September 12, 2009
Far East banks are piling into the UK mortgage market
Far East lender Hitachi Capital and Dragons' Den star James Caan are to launch a new loan service for first-time buyers who are struggling to obtain a mortgage. They will offer loans to cover the deposit, raising the original agreed LTV from 75pc of the value of the property to 95pc. It will also cover additional expenses such as legal fees, stamp duty costs and conveyancing, which can sometimes push the borrower over the affordability threshold. Loans of up to Â£100,000 will be offered exclusively through estate agents, and can be repaid over two to three years. The news is a further shot in the arm for UK borrowers and follows Bank of China's decision to enter the market earlier in the year.