According to some industry officials the widespread panic over the affordability of and accessibility to mortgages in the UK has been blown out of all proportion, resulting in widespread panic. Officials from mform have stated that there are actually still some good deals available on the market for many borrowers, and that the doom and gloom that has been spread in relation to mortgages has been overdone.
Mortgages have been dominating the financial headlines over recent months, with many lenders having hiked up interest rates, reduce the range of products on offer, and increased stringency with regards to eligibility. Many have also increased the amount of deposit required in order to access their more competitive deals, with those that have a lower deposit being left with higher interest deals according to reports.
An official from mform said: ‘Mortgage customers are undoubtedly facing challenging times but they are not as bleak as is being painted. People coming off two, three and five-year fixed rate deals this year will face higher monthly payments. However they will have benefited from house price increases and that will have enabled them to build equity and to substantially improve their loan-to-value.’
However, some officials expect the mortgage crisis to get even worse over the course of this year, with many brokers predicting that liquidity levels will fall to a point where the number of mortgages available will decrease significantly. One industry official said: ‘Banks and building societies are not surprisingly reviewing their lending criteria and overhauling their risk management programmes in the light of the current market and economic situation with the aim of reducing their exposure to bad debt.’
Recent additions:
Popularity: 54% [?]