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90 percent mortgages fall by 97 percent over two and a half years

June 30, 2009 by admin  
Filed under News, News-Mortgages

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Most people are well aware that the mortgage market has been experiencing problems over the past couple of years, since the onset of the global credit crunch, and many mortgage products, particularly for groups such as first time buyers, have been disappearing from the shelves making it difficult for many people to get an affordable mortgage loan.

Over the past couple of years first time buyers have seen 125 percent and 100 percent mortgages disappear from the market, and even 95 percent mortgages are now pretty much impossible to find.

Worrying, a recent report has shown that 90 percent Loan to Value mortgages – those that require a deposit of just 10 percent – are also disappearing, and figures have shown that over the past two and a half years the number of 90 percent mortgages available to first time buyers has fallen by a massive 97 percent.

With lenders now demanding crippling deposits from would be buyers many first time buyers are still priced out of the market, despite lower house prices and rock bottom interest rates.

One industry expert said that the government had failed to boost mortgage availability for first time buyers despite trying to take measures to improve the availability of mortgage finance.

She said: ‘The Government has failed to get mortgage lenders to open their books to first-time buyers. A 10% deposit is all most first-time buyers can hope to afford, so by pulling 90% LTV deals off the shelf, and increasing rates on the remaining deals, providers are keeping first-time buyers out of the market – which simply exacerbates market stagnation.’

She added that lenders were too caught up in trying to get larger deposits, adding: ‘However, if they were to take a more balanced view and place as much importance on affordability and credit profile, they could offer competitive deals with a higher LTV to those who clearly demonstrate they can and will make the required repayments.’

Tags: Loan to value, loan, worrying, 90% mortgages, Mortgages, 90% LTV mortgages, Business Finance, importance

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Comments

One Response to “90 percent mortgages fall by 97 percent over two and a half years”
  1. johnson says:
    December 13, 2009 at 7:34 pm

    SIMPLE ANSWER————- 95% MORTGAGES FOR PROPERTIES VALUED AT LESS THAN
    £150000 OR SIMILAR FIGURES AND TAPERING AS THE PROPERTY VALUE INCREASES

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