03-03-2008
IFAs highlight return of savings culture
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Mortgage specialists John Charcol has indicated that there will soon be a return to the culture of saving in the UK.
The organisation believes that with a number of mortgage lenders reducing maximum loan-to-value (LTV) levels down to 90 per cent from previous level of 100 per cent, individuals will now need to save for a mortgage deposit.
Potentially important for buy-to-let investors, John Charcol has highlighted that those currently paying rent will be affected by the consequences of having to save, in addition to those individuals who are still living with parents.
"Some parents may be able to gift deposits but more parents need to keep hold of their own equity to replace the pension funds they have been let down on," said John Charcol, an organisation established in 1974.
"Such a constraint on availability of money to buyers can only re-adjust the property market back down in value."
Among those lenders who have reduced their maximum LTV levels are Cheltenham and Gloucester.