July 14, 2008

The state of the UK mortgage market

How the mortgage market has changed over the past year or so. It was not that long ago when borrows were inundated with so many different mortgages from equally as many lenders, but that was before the credit crunch and now things could not be any more different.

The problem now for borrowers is that the lenders are no longer falling over themselves to get the business of a new borrower by offering mortgages that were for some people to good to be true. Well maybe they were just that, because the market has now completely changed.

The mains reason for these changed are the lack of funds available to the lenders from the banking industry this leans nicely into another reason, which is the lack of confidence that lenders have in the ability of borrowers to pay the money back.

One thing is for sure, the mortgage industry is going to be very cautious for some time to come, which could have long term effects on the property market too.

Source [Trade Bloggers]