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Homebuyers struggle to obtain mortgages
Fri 23rd Oct 09 - 15:33
The most recent survey from Equifax shows that buying house at present can be difficult. Getting a good mortgage deal on the first request is still a big problem for the domestic market.
Equifax consumers surveyed its customers about the mortgage in September 2008 and found that 23% have difficulty obtaining a good deal on the first application.
The problem seems to be due to the impact of the current financial environment and continues to hit consumers searching for a good mortgage deal," confirmed Jonathan Smith, Chief Broker at North Mortgages. "This probably is not surprising many in the home buying market, but it does indicate that the lenders are still very selective about who they extend the best offer.
"A quarter of respondents in the survey thought this that they struggled first time, because of past defaults on their credit file. But what has changed is that 17% of the respondents expressed difficulties in finding a mortgage because they did not have a big enough deposit to put down as security, compared with only 9%, the same in 2008.
It is likely that consumers will continue to meet stricter lending criteria for acceptance of credit.
More funds are available as a result of lower interest rates which have also had an impact on individuals reducing the size of their current liabilities.
But after the fear of the loss of jobs 1 in 3 respondents said that they could only manage up to two months before they would experience financial difficulties when they lost their jobs. And 18% are concerned about the possibility to pay their fuel bills this winter.
The survey clearly shows whilst lenders remain cautious, it is important that property buyers or borrowers who's current deals are coming to an end need to have has much creditworthiness possible."
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Source: North Mortgages Ltd - 23rd October, 2009
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Established in 2007, North Mortgages has built up a reputation as a whole of market mortgage broker with access to the best deals on the market.
North Mortgages has helped thousands of people obtain independent advice on Mortgages and Remortgages in Manchester and the UK. For more information visit www.northmortgages.co.uk or contact the whole of market mortgage brokers now on 08000 949595
