More lenders starting to look at lower deposits
November 17, 2009 by admin
Filed under News, News-Mortgages
Over the past couple of years things have been very difficult for first time buyers, and one of the things that has really affected the abilities of first time buyers to get onto the property ladder is the huge deposits that lenders have been demanding since the onset of the global credit crunch.
Many lenders have been demanding deposits of 25 percent or even 40 percent in some cases which is a far cry from the traditional deposit of just 5 percent or in some cases no deposit mortgages, which were available to first time buyers in the past.
A recent report has suggested that lenders may, however, be easing up on their demand for high deposits, which could mean that first time buyers stand a greater chance of getting onto the property ladder because they do not have to find so great a deposit.
With interest rates still at an all time low of just 0.5 percent and with the government’s suspension on stamp duty on properties of up to £175,000 this could be a good time for first time buyers to try and get onto the property ladder.
Since March of this year the number of mortgages available with just a 15 percent deposit is said to have rocketed by over sixty percent, which will prove good news for struggling would be buyers that have no previous property from which to take equity.
Although the base interest rate has stayed at its all time low of 0.5 percent some industry experts have said that this will have little impact on actual mortgage rates, as these now seem to be more to do with the level of competition in the market rather than the base interest rate.
Tags: Banking, 5% mortgages, demand, Mortgages, cry
