Cheap mortgage deals difficult to obtain
Obtaining a cheap mortgage deal is becoming a major difficulty.
First time buyer mortgages in particular could be in for much as 125 per cent of the property's value, generally for making improvements or to reimburse any additional costs and fees for rearranging their current home.
This has only been the case due to lenders withdrawing mortgage deals, and lenders have stopped offering a 100 per cent mortgage overall.
From Mortgage Expert, Katie Tucker suggested that this will change the way of consumer buying for the following years, as home buyers would need to gather a fair amount of cash for their first home.
Ms Tucker commented, "More young people will stay at home for longer, and those paying rent will have a difficult time saving as well. Some parents may be able to gift deposits but more parents need to keep hold of their own equity to replace the pension funds they have been let down on. Such a constraint on availability of money to buyers can only readjust the property market back down in value."
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