Homeowners struggle to get better mortgage deals

It has been revealed in a recent report that many homeowners across the UK are struggling to get new and more affordable mortgage deals, as the recession and the difficult financial climate results in lenders still being very careful about their lending criteria.

A report has suggested that as many as 25 percent of UK homeowners are now finding it impossible get a new home loan deal, making things very difficult for those that were hoping to save some money with lower interest rates.

The data was carried out by the National Association of Estate Agents, and officials from the NAEA have said that continually tightening lending criteria has contributed to the lack of affordable finance available for existing homeowners. With interest rates at an all time low of just 0.5 percent many homeowners on higher rate mortgages may have been hoping to get a better deal, but a quarter of them are unable to get cheaper finance.

Industry officials have expressed concern that this ‘closed door’ attitude from lenders could adversely affect the recovery of the property market. One official stated: “We cannot let the banks convince us that shutting up shop when it comes to mortgage lending is a responsible move. The decision to restrict mortgages so severely is rooted in self interest. The Government must do more to put pressure on those banks that are refusing to lend, while highlighting those banks that are easing restrictions to help get the economy moving again.”

Around eighteen hundred homeowners were polled by the association in order to get these figures, and 60 percent of these said that lenders needed to open their doors to borrowers again in order to aid the recovery of the housing market.

Tags: better mortgages, attitude, Mortgage loan, report, cheaper finance, Mortgages, homeowners