Tough reality for first time buyers
Article source: www.manchestereveningnews.co.uk
The present escalating monthly mortgage repayments and steeply falling house prices are among two of the biggest issues currently being encountered by families with outstanding mortgage loans in the United Kingdom.
A number of prospective first time buyers hoping to benefit from the fall in the house prices are now having to wake up to the fact that the days of the 100% mortgage are well and truly gone. Gone are those glory days and the reality now is that the best rates are reserved for those with a 25% or more down payment.
Currently, there are no major mortgage lenders offering more than 95 percent of the value of a home; if they do then the interest rate is quite exaggerated. HSBC, for example, is the latest mortgage lender to introduce higher rates for mortgage borrowers with a deposit of no more than 25 percent.
The Halifax (a subsidiary of the Halifax Bank of Scotland Group), Nationwide Building Society and Cheltenham & Gloucester have all announced escalation in their mortgage rates in the past couple of weeks for fixed-rate mortgage deals.
A spokesman from Charcol, an online mortgage broker, Mr John Boulger said that there was no point of people wandering all over in search of new mortgage deals at the moment. Mr Boulger said that property prices are the back-bone of stability therefore adding that there is a looming cut in the interest rates which if amalgamated with the fact that government is in the process of taking some action to bring stability to banks may produce acceptable results.
In addition, Mr Boulger foresees a return of stability and confidence to the mortgage lending and banking sectors. In reiterating he said that mortgage lenders would start making mortgage products more available at higher Loan to Values in the next few months and that would widely help both the prospective and first-time buyers.
About Charcol
Charcol is an online mortgage broker. They are independent of any bank or building society and are therefore able to search the whole market to bring their customers the best products from all lenders. Charcol is a well established mortgage broker which links in to 35 of the most reputable lenders in the United Kingdom; therefore giving its potential clients access to some of the best deals currently on offer in the UK.
Their expert mortgage advisors will help right the way through the mortgage process, from application, to offer and through to completion. Their team will keep you informed every step of the way and what’s more, you will have a single point of contact who will be looking after your application and liaising with the mortgage lender on your behalf.
Charcol is renowned for its level of service and attention to detail, this combined with a slick online operation has earned them many prestigious awards over the last 9 years. Here are just a sample:-
- the 2007 Best Online Mortgage Broker award from What Mortgage?
- the 2006 Best Online Broker award from Pink Home Loan Service Awards
- the 2006 Best Online Broker award from Mortgage Introducer Awards
- the 2006 Online Mortgage Provider award from the Financial Advisor Mortgage Awards
- the 2004 Best Online Mortgage Provider Award from the Online Finance Awards
Charcol is a development of an established an experienced independent mortgage broker, John Charcol, which was originally born in 1974. It became one of the most reputable brokers in the market and had a reputation for quality advice and friendly service. Charcol was briefly owned by the Bradford and Bingley bank for a four year period between 2000 and 2004; it is however now back in private hands.
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