Increasing home loan rates and severe loan conditions in the UK financial markets are making the home-buyers struggle for their first home. 
United Kingdom of Great Britain & N. Ireland (Press Release) January 18, 2008 --
London (online-unsecured-loans) 16 January, 2008: Lenders have adopted a cautious approach and slashed the availability of credit. There are now very few mortgage lenders who offer 100% loan to value.
Nearly, one-third of 100% mortgages have been discontinued by the banks and building societies since last summer. Apart from that, the lenders have also reduced their loan to value criteria for best interest rate deals.
A research by price comparison service Moneyfacts reveals that out of the 32 mortgage lenders that were selling 100% mortgages, 10 have stopped selling such products since June 2007. Mortgages and secured loans have also become costlier since the credit squeeze hit the UK financial markets. The tightening borrowing conditions and rising cost of borrowing have contributed to the slowdown in the UK property market, with first-time buyers and buy-to-let consumers leaving the market.
With strong likelihood of two to three quarter point reduction in the base rate in 2008, the best way for the borrowers will be to opt for tracker mortgages that follow the central bank’s base rate of interest. Andrew Montlake from Cobalt Capital said: “Despite the decision to leave rates on hold, our advice to borrowers remains very much the same; tracker mortgages are by far the most attractive proposition in 2008.”
For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit http://www.online-unsecured-loans.co.uk/
Nearly, one-third of 100% mortgages have been discontinued by the banks and building societies since last summer. Apart from that, the lenders have also reduced their loan to value criteria for best interest rate deals.
A research by price comparison service Moneyfacts reveals that out of the 32 mortgage lenders that were selling 100% mortgages, 10 have stopped selling such products since June 2007. Mortgages and secured loans have also become costlier since the credit squeeze hit the UK financial markets. The tightening borrowing conditions and rising cost of borrowing have contributed to the slowdown in the UK property market, with first-time buyers and buy-to-let consumers leaving the market.
With strong likelihood of two to three quarter point reduction in the base rate in 2008, the best way for the borrowers will be to opt for tracker mortgages that follow the central bank’s base rate of interest. Andrew Montlake from Cobalt Capital said: “Despite the decision to leave rates on hold, our advice to borrowers remains very much the same; tracker mortgages are by far the most attractive proposition in 2008.”
For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit http://www.online-unsecured-loans.co.uk/
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