Fewer mortgage lenders willing to offer £1m deals, says expert

June 11, 2008 by admin  
Filed under News, News-Mortgages

Homebuyers looking to spend in excess of £1 million on a property may have difficulty finding a large mortgage to fund their purchase, according to Bestinvest.

The head of mortgages at the company, Peter O’Donovan, has said that fewer lenders are now willing to give out mortgages of £1 million or more.

Since the economic downturn hit last year, lenders have been tightening their criteria and offering borrowers fewer products, and homebuyers wanting to secure a large mortgage will now face hefty interest rates if it is over the £1 million mark, according to HFM Columbus.

Mr O’Donovan said that the reason for fewer high-end mortgages could be attributed to the credit crunch.

“Lenders feel they have a smaller amount of money available to lend to at the present time. Therefore, they’d rather spread the risk over, say, 20 mortgages of 100,000 than two mortgages of a million pounds,” he commented.

Tags: Financial services, loan, expert, Mortgages, Mortgage loan, economic downturn, mortgage lenders, downturn

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