Mortgage Financial Advice
Ever since the issues surrounding the Northern Rock and the start of the credit crunch there has been much comment in the media about implications to the UK mortgage market.
The UK mortgage market is operating in a way not seen before; in recent times we have seen an oversupply of funds with lenders offering very competitive mortgage products with ever widening criteria allowing very flexible borrowing terms. However, over the past months we have seen lenders increasing the interest rates that they are charging and tightening their lending criteria.
To further exacerbate the problem some lenders have even left the market reducing the choice still further for the consumer.
There are three reasons why this is happening. Firstly, there is a lack of liquidity in the market, put simply the banks are finding it difficult to borrow money which they will then lend onto the consumer. Secondly, lenders fear a fall in house prices, which they believe could lead to a greater level of mortgage arrears; with serious consequences for their profits.
The third issue is the administration of new applications; many lenders have run into serious problems trying to cope with the increased volume of business as a result of competitors withdrawing from the market. This has also led to an increase in the interest rate charged as lenders try to reduce the flow of applications.
At a time like this it is crucial that you obtain independent advice with regard to your mortgage needs and house move as well as seeking independent advice if you are coming to the end of your mortgage deal.
For our part, you can be assured that the Mortgage Adviser at Four Corners Financial Management will scour the market and work extremely hard on your behalf to ensure that you obtain the best possible deal for your circumstances.
Call the Mortgage Adviser on 0115 982 2996
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