29
Apr
Availability 'key problem' in the mortgage market
Availability rather than affordability is the main problem facing
those looking for a mortgage at the moment, according to
MoneyExpert.com.
The financial advice website suggests that those who do not have a
substantial deposit or equity in their home are likely to find
their choices "severely limited" when it comes to getting a
mortgage.
In particular, it singles out first-time buyers and people
renegotiating their mortgage for the first time as the ones likely
to be worst affected.
According to MoneyExpert.com's research, the average person
remortgaging today will need a deposit of 15.5 per cent to take out
a fixed or variable product.
In addition, it found that one in five fixed and variable mortgages
now come with a maximum loan-to-value of 75 per cent or less.
"When disposable income is already at breaking point for many, it
is frankly impossible to see how those with limited savings will
find a way to get a foothold on the property ladder," the website
said in a statement.
Yesterday, it urged homeowners struggling with finances to look
into mortgage payment holidays as a possible option.
