This is a question being asked by many of our clients.
When the credit crunch started the banks and building societies adjusted their lending criteria and some four years later the goal posts continue to be moved; a tactic that could well help Blackburn Rovers defensive problems. Moving goal posts and continued meddling with the Financial Markets are now par for the course and something we all have to get used to.
Over recent years we have seen the demise of the 125%, the 100% and in a lot of cases even the 95% mortgage. This has caused First time Buyers major problems as they now have to juggle payment market rents and trying to save deposit monies of £20,000 to £30,000; all the time seeing property values increasing, albeit slightly.
That first step onto the property ladder has, in some cases, never seemed so high.
Next time buyers are also not immune to these austere measures. Some of those who purchased three years ago, having saved for a deposit and obtained a 95% mortgage, now find they cannot remortgage due to the current market value of their home. Many of these are with lenders who have subsequently ceased lending and therefore will not offer them extensions to their fixed rate, leaving them at the mercy of the increasing Standard Variable Rates.
The Self Certification mortgage is now a distant memory and whilst there will be some that applaud the downfall of such an anomaly; such as sudden and total withdrawal of this type of lending has resulted in a large number of self employed borrowers either unable to re-mortgage or being faces with having to sell their property.
Now is the time for a more sensible approach, where affordability is the key issue. Yet one more reason why you should only deal with an Independent Financial Adviser and one that has access to the whole of the market.
Our advisers are Independent and able to assist you in obtaining the most appropriate advice for your needs.
If you need some advice contact Cooper Adams and ask for Steve.