FTBs are being squeezed out of the housing market by unaffordable mortgage deposits…
Katie Tucker of Online mortgage Broker Charcol, revealed: “A tend towards larger deposits could signal a shift in the mortgage market and, consequently, the housing market. The mortgage market is readjusting and the housing market will follow.
“The accommodating lending criteria of the last decade has allowed many people to buy who otherwise wouldn’t have been able to, which has helped push property prices through the roof.
“Following last weeks mass withdrawal of all mortgages that allowed you to borrow more than the value of your property, first time buyers with no deposit, or existing debt will find it difficult to buy now”.
“The move could mean that the market becomes more attractive to high-end investors, who can raise the capital needed to secure a property, particularly if the cost of borrowing falls as many are predicting in light of widespread economic uncertainty.”