Below Normal Deposits now being accepted by some UK Housing Lenders
Remortgages and original mortgage loan products will be difficult to obtain by most residents in the year 2012, according to many housing insiders. The reasons remain the same as to why they will continue to struggle. High inflation, high unemployment, anxiety over the economy in general and the ongoing saga in the Eurozone is the short list for now. The average first timer seeking a home loan or the veteran homeowner ready to remortgage will both require something which is quite an oddity for these times – a solid credit score. We are now living through a time which is seeing normal individuals resort to using a credit card to pay the monthly mortgage or rental payment just to remain in their dwelling.
Experts believe it will be more of the same for the year 2012. Typically, time heals all wounds. But for now that time will be extended by most predictions. There is however relief being offered by many UK lenders. There are numerous breaks being given when it comes to deposit amounts on mortgages. Since the deposit is such a major component of the home buying process this is a welcome sight and not a moment too soon. There are certain opinions swirling about what will happen to the base rate and lenders are already ramping up some of the interest rates on many deals. For those interested in home ownership or a remortgage, it could be advantageous to approach someone now as opposed to later.
Aaron Strutt, adviser at Trinity Financial, commented on deposits and what is now acceptable, saying: “Lenders have been offering more low-deposit mortgages. However, borrowers still need an excellent credit score to qualify for one of these deals.”