Research has revealed that the number of mortgage deals on offer to customers has dropped from 15,599 last July to 5,785, according to Moneyfacts.
Lenders are removing deals and changing conditions daily. Conditions can change to raise minimum deposits or pay higher rates. This will have a huge impact on the hosuing market, with only 1 in 3 houses expected to sell, according to Henry Pryor, property expert from website Primemove.com.
He said that many will find their dream home, but will not be able to raise a mortgage for it and that sellers must be realistic with prices and expect to raise 10% - 15% less than last summer.
This drop is not just in the troubled sub-prime market. The 'prime' market has also dropped from 3,803 deals to 2,540 in the same time period.
Deals that have done include the 100% and 125% mortgages. Only Abbey now offers a 100% mortgage to the main market, with other lenders offering 100% deals that require further securities, e.g. parental involvement.
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