25-03-2008
Tightening of mortgage lending criteria highlighted
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Information service Moneyfacts has warned that mortgage lending criteria is starting to become more restrictive in the UK.
According to information released by the organisation, during the latter half of last week a number of mortgage lenders made their lending criteria more restrictive, with first-time buyers required to provide larger minimum deposits, reports the BBC.
"Those wanting to move might find a mortgage they could have got six months ago, even a month ago, is no longer available to them," said Ray Boulger, a representative from mortgage broker John Charcol.
Indeed, one such lender, the Co-operative Bank, has opted to decrease the maximum loan-to-value levels offered on its mortgages, from 95 per cent to 90 per cent. A number of smaller building societies have gone further, choosing to either stop mortgage lending entirely, or place a number of new restrictions for those looking to obtain a mortgage.
Moneyfacts is an independent organisation, established in 1988.