Consumers have been warned that fast action is needed if they wish to take advantage of any remaining competitive deals in the mortgage market, with industry professionals warning that many lenders are withdrawing some of their most affordable deals very quickly, leading to many consumers who dither and delay losing out altogether. This stark warning comes from a number of mortgage brokers, who have urged consumers looking for a new mortgage to act quickly.
There are also other reasons why customers need to take quick action with regards to getting a new mortgage, according to these brokers. Firstly, mortgage lenders are whipping deals off the shelves very quickly, and this means that consumers have very little time to act if they see a mortgage that they like the look of. Secondly, an increasing number of lenders have really tightened up their lending criteria, and are continuing to do so, making it difficult for many to get credit.
One official said that lenders are being far more careful about who they lend money to and how much business they take on in light of the credit crunch. Many mortgage lenders are struggling to raise finance on the wholesale money markets in order to fund their mortgage lending, and this has resulted in a tightening up of policies and lending criteria, with many having to reduce their mortgage range and place severe restrictions on lending.
One official stated: “They are being much more careful about who they are lending to and how much business they take.”
Another report has shown that the range of mortgages available in the UK has plummeted since last July, before the credit crunch, with the number of mortgages dropping by around two thirds since that time.
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