The Finance Zone | Council of Mortgage Lenders
| Updates from the Council of Mortgage Lenders (CML) indicate that an increased number of new house are getting help from parents to enter the market.
This might not be good news in itself, however when shown together with the facts that lending criteria stopped tightening which means that Mortgage Lenders are being more flexible in their approach which can only be a good thing. First-Time buyer deposits remain unchanged. And the typical first-time buyer needed to borrow 2.97 x Salary. The good news here is that activity in the Housing Market looks set to continue moving in the right direction which must be good news. Mortgage Lenders are increasingly looking to lend to better customers and the massive number of potential borrowers who need some kind of extra underwriting due to ‘credit problems’ are increasing as the Credit Crunch moves forward. You really should take action to get hold of your Credit Reports from the likes of Experian (do not order the expensive online version) get the ‘Statutory Report’ for £2. Make sure you check this for errors and correct any you find. Meanwhile keep saving that deposit if you are a potential first time buyer and if you currently have a mortgage ensure that you reduce your Mortgage as soon as possible. Mortgage Reduction is a popular rant of mine, but it is the one item of Financial Planning that always makes sense. |
