Todays Mortgage Market

by Peter White

Normal High Street Type Lending - Even though the current crisis stemmed from sub prime mortgages criteria and products have changed dramatic lay in this sector as well, borrowers will find it much harder to get certain type of products that they were once used to obtaining.

Gone are the days of 100% mortgages the minimum deposit that is in reality available is at least 10% though many lenders will start at 15% deposit and if its a flat that is the property in question then 25% deposit is much more realistic, also in the past lenders may have fast tracked an application which means if your credit score was high they may not have asked for proof of income however this lending is now much harder to come by. Borrowers will also face much tighter restrictions on the income multipliers lenders will use as once five times a salary could be used to obtain high levels of borrowing this has now severely decreased.

Sub Prime Lending (Poor Credit Mortgages) - This type of lending is quite simply practically non-existent with the lenders (those who are left in the market) restricting their products to match only a few applicants, this of course is very bad news for sub prime clients coming to an end of their current deals as they have very little choice other than to go on the lenders standard variable rate.

Self Certification Mortgages (No Proof of Income Mortgages) - Again this market sector has suffered with criteria being severely restricted both with deposit required and overall suitability, once there were available to those with poor credit and employed applicants however neither of these type of applicants will now be accepted on this type of lending.

But to let Mortgages - Yet again an overall tightening on lending criteria sub prime borrowers are no longer welcome with the 'good old days' of only 10% deposit long gone these days the minimum deposit is 25%. In the past the main basis of the lending decision was on the rental income to be received however now the main income of the applicant is also likely to be taken into consideration when considering any application. Lenders in the past were mainly concerned with the amount of lending they had with a particular borrower but now they will be very wary of any borrower with a large buy to let portfolio as in these days of falling house prices they need to limit their risk exposure.

Self Build Mortgages - Self Build Mortgages have also suffered as a result of this current situation whilst they rarely tended to deal with those with poor credit there were a few self cert deals available but now there are just a few remaining, it is also virtually impossible to obtain a mortgage with no redemption penalty which was very useful as when the new build property was finished you could have then remortgaged to amore traditional mortgage.

In short because of todays turbulent markets you would always be best advised to seek the professional advice of a whole of market mortgage broker to guide you through the pitfalls of todays volatile markets.

http://www.ownbuild.co.uk/buy-to-let-mortgages.htm

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