UK Mortgages in 2008
Housing Market
2008
started with the overflow problems from the American credit
crunch. Many lenders in the UK were backed by US banks, an
example would be Lehman Brothers supplied finance for Southern
Pacific and Mortgage PLC. These lenders were specialist lenders
dealing with higher risk loans, for example bad credit.
The
results of the credit crunch has dried up the liquidity of
the UK market. This entails banks not lending to each other
because they fear the money will not be secure. This leaves
banks having to use their own funds which are less.
The
result is many lenders have withdrawn product ranges and the
deals which are left have higher fees and rates. The lenders
are also much stricter on their underwriting criteria. Any
deals which are higher risk have the highest standards to
meet. Or lenders are generally just requesting borrowers to
increase their deposits in order to reduce risk by lowering
the loan to values of mortgages.
House
prices have in some areas of the UK began to reduce in price.
Sales are taking longer as sellers hesitate, some estate agents
are finding business very hard to maintain. First time buyers
are now struggling with the problems of much fewer loans and
the ones that are available are too expensive. Many property
buyers are struggling to save up the large deposits required.
Some feel it is best to wait for prices to drop and then buy,
this all add up to a large slow down in the UK housing market.
| The
following APR relates to the above products only.
THE OVERALL COST FOR COMPARISON IS :-
8.9%
APR
The actual rate available will depend upon your circumstances
ask for a personalised illustration. |
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