Subscribe to The Money StopNews Feed

Browse > Home / News, News-Mortgages / Mortgage deals upset by credit crunch

Mortgage deals upset by credit crunch

November 16, 2007 by admin  
Filed under News, News-Mortgages

Leave a Comment

Mortgage applications are being hit by the global credit crunch, new research has warned.

The chaos in global financial markets caused by the US sub-prime lending crisis is now unquestionably affecting ordinary people in the UK.

Brokers are reporting that 17 per cent of decisions in principle by mortgage lenders are not being honoured after the event, due to the rapidly changing conditions.

And nearly a quarter (23 per cent) of all mortgage offers being made have been affected by the credit crunch, brokers have told GE Money Home Lending.

Duncan Berry, Sales Director, GE Money Home Lending, warned: “During these challenging times there will inevitably be changes to ranges with shorter notice periods, but communication is key and lenders should endeavour to give brokers reasonable notice to alterations in product ranges and changes to pipeline dates.”

Nevertheless, brokers themselves were found to be remarkably tolerant of lenders’ behaviour.

59 per cent said that it was acceptable for deals to be withdrawn or changed at short notice.

Tags:

Related Entries

  • Mortgage deals keep disappearing
    • Since the latter part of 2007 the world of mortgages has seen a lot of changes, and the sector has been in turmoil ever since this time. The global credit crunch has had a profound
  • It’s ‘always worth’ comparing mortgages, says expert
    • Independent website Your Mortgage has told consumers not to be content with their current mortgages deals because it is "always worth" comparing mortgages from different lenders to try to get a better one. Pauline McCallion, editor
  • First-time buyers face bigger deposits
    • First-time buyers are now having to stump up bigger deposits than before to buy their first home, even though property prices have been falling in recent months, it has been reported. Homemove.co.uk. has said that the
  • Consumers still having to pay high deposits for affordable mortgages
    • Over recent months getting a mortgage has become increasingly difficult and expensive, with many lenders reserving their best deals and lowest interest rates for those that are able to put down a sizeable deposit as
  • Demand for five-year mortgages expected to grow
    • The number of homeowners looking for longer-term fixed mortgage deals is set to rocket, a leading bank has reported.Research by Abbey Mortgage Index has shown that buyers seeking a fixed deal lasting five years have
  • Self-certification mortgages still available despite credit crunch
    • Self-certification mortgages are still available despite the credit crunch and consequent tightening of lending criteria, according to industry experts. Mortgage advisers Alexander Hall said that the credit crunch has had "nowhere near" the same impact
  • Mortgage rationing could get worse states CML
    • The Council of Mortgage Lenders has recently warned that mortgage rationing in the UK could continue to get worse, adding that mortgage lending has already been restricted for the past year due to the effects
  • Buy-to-let mortgage market affected by credit crunch
    • The UK's buy-to-let mortgage market is being adversely affected by the recent credit crunch, according to a financial website.Research from Moneyfacts.co.uk indicates that it is becoming increasingly difficult for potential property investors to obtain a

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!