28-02-2008
No-deposit homebuyers edged out of market
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Potential homebuyers who do not have a deposit to place against the sale of a property are being politely pushed out of the property market, it has been claimed.
Katie Tucker, a representative from mortgage broker John Charcol, has confirmed that those looking to purchase a property for the first time, without a deposit, will now encounter problems when searching for a mortgage.
However, Ms Tucker stressed that the market still contains some mortgages with loan-to-value ratios of between 95 per cent and 100 per cent. "The mortgage market is readjusting and the housing market will follow," said Ms Tucker. "The accommodating lending criteria of the last decade has allowed many people to buy who otherwise wouldn’t have been able to, which has helped push property prices through the roof."
In related economic news, interest rates for the UK are currently set at 5.25 per cent. The Bank of England's monetary policy committee will next announce its interest rate decision on March 6th.