You are currently browsing the Less2sell Online Estate Agents Blog weblog archives for the day 26/02/2008.
- First time buyers (4)
- General (10)
- HIP's (6)
- Tips (6)
- UK Interest rates (16)
- 28/05/2008: Mortgage Approvals Down by 40%
- 10/05/2008: Interest Rates Remain Static
- 10/04/2008: Bank of England Reduces Interest Rate
- 26/02/2008: Mortgage lenders leaning towards cash-laden buyers
- 07/02/2008: Interest Rate Cut to 5.25%
- 23/01/2008: Interest rates could fall to 4%.
- 06/12/2007: Interest Rate drops by 0.25%
- 27/11/2007: Looking For A Good Deal - Tips For Homebuyers
- 23/11/2007: Pre-Christmas Slow Down Comes Early
- 23/11/2007: Final Phase Roll Out of HIP's
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Archive for 26/02/2008
Mortgage lenders leaning towards cash-laden buyers
26/02/2008 by Damian.
The credit crunch is starting to afect mortgage borrowers who are unable to muster a big deposit. Nationwide has told its customers wanting a loan of more than 75% of the properties value that they will pay higher interest rates to reflect the increased risks involved.
Nationwide increased its mortgages for home buyers wanting to borrow 75% or more by 0.2%.
The move will undoubtedly hit first time buyers the hardest especially when you consider that the UK average deposit for a home is 20%.
To put things into perspective, on a Nationwide home loan for £150,000 a borrower would need to save £37,500 to get the most competitive rates of 5.68. Last week that deposit would have been £15,000 to get the same rate.
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