First time buyers are finding it increasingly difficult to get a UK mortgage, and even though banks are aware of this, little has been done to change the problem. Right now, in order to get a UK mortgage, buyers must be willing to pay higher fees, have a larger down payment and they may still get stuck with high rates. For many, it’s just not worth it to get a UK mortgage.
“First-time buyers or those who have entered the property market recently will struggle to qualify for the most competitive rates,” explains Francis Ghiloni, mform’s marketing and business development director.
“That makes it even more important for borrowers to focus on the true cost of their loan including all fees and not to simply focus on rates. There are still competitive deals and lenders willing to offer 95 per cent loans but the most competitive offers are being restricted to people with big deposits or substantial equity.”
“Availability of mortgage deals remains the biggest issue for borrowers who do not have equity in their homes,” he explained. “Those who have benefited from the decade-long housing boom can still qualify for the most competitive rates.”
Related reading : UK Mortgage
