Recession Effects: Mortgage Market in UK has Gone Down

By: Will Scarlet

New financial studies have shown that September 2012 was third worst September in context of finance in last two decades. A debt expert has expressed his views on UK mortgage market and according to his statements the mortgage market in UK has become weaker considerable to a year ago. High value mortgages were available with toughen criterion a year before. If a person needs larger mortgage in UK then it is essential to know about the facts and other associated things for making a fine deal.

National survey firm has published research results recently which shows that lending against home in UK have fallen by 7 percent in last year and the last month September has shown worst results with following three Septembers since 1993.

Survey results also indicate that though creditors have improved credit availability but those credits are not using in proper amount for lending purpose. Home based borrowing has fell down by 7 percent in September from the same month of last year 2011. On the other hand, other types of loans against the value of product have become popular in this period. People are moving towards modern approach of cash like logbook loans as at least it doesn’t involve the risk of losing one’s home. Restrictive lending criterion on property loan is also major reason behind reduced mortgage lending. Fewer first time buyers are getting approval to get a mortgage as reported by property community.

A debt advisor and manager at a financial firm has said that getting mortgage has become harder unless the client has net worth mortgage with large deposit. An increase of 41 percent has been noted in September in case of struggling first time buyers who want to get onto property ladder. One in ten house buying loans were value more than 85 percent. Debt experts also believe that September is not the single month where mortgage market gone down. Downturn in UK mortgage has been noticed since June. It is considered weaker than the previous year. High LTV mortgage criterion has become more restrictive and all these things are the results of double dip recession period.

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Will Scarlet is a business writer specializing in finance and has written authoritative articles on the finance industry. He has been efficient in providing useful information about log book loans and bad credit loans.

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