Mortgages are harder to secure in 2008

If you’re looking to secure a mortgage in 2008, you could be facing an uphill battle.

Mortgages used to be ten a penny. In the past decade you could walk down any high street and be barraged with offers for competitive mortgages. But now things are changing. The credit crunch we’ve been warned will make itself known in 2008. Mortgages will be increasingly difficult to secure as lenders become more prudent about their lending criteria. It’s been predicted that the City is heading for its toughest times in a generation as the credit crunch spells doom and gloom for the property market.

Mortgages turned down

Profits are expected to plummet for banks and building societies, and the fall in business is sharper than ever – the last time things looked so gloomy was in the recession of the early 1990s. General economic gloom is fuelling the drop in mortgages. There are a number of factors adding to the difficulties of obtaining mortgages from high street lenders including:

• Job insecurity as concerns over an impending recession loom
• The projection that house repossessions will rise dramatically as more homeowners are unable to keep up with their mortgages
• The fact that utility bills are set to rise by at least 10%
• The crack down on wages in light of the financial insecurity will impact on affordability of mortgages

Mortgages harder to secure

As well as more homeowners being expected to fall behind on their mortgages risking repossession, more individuals are predicted to fall into insolvency. The general feelings of economic gloom mean many people are put off from investing in mortgages on the one hand, and lenders are tougher on the credit histories of wannabe homeowners on the other. The irony however is that if the bottom does fall out of the housing market, it is a golden opportunity for first time buyers and those priced out of the market to get onto the property ladder. The difficulty is whether or not those prospective buyers can secure competitive mortgages in such a difficult financial climate.

Building societies that rely on the property market more so than banks have said they are struggling to raise funds for mortgages and home loans as a result of the credit squeeze. If you’re looking for competitive mortgages to snap up a property bargain, you might need to turn to specialist lenders – especially if you have a bad credit history.

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If you are looking for a new mortgage, let the experts save you time and money by finding the right mortgage for you.

Homebank have qualified mortgage consultants ready to advise you with all your mortgage and insurance needs. For informative, insightful mortgage advice, call us to arrange a no-obligation appointment to suit you.

Homebank are the “people’s mortgage broker”, with thousands of mortgage products to choose from, including some that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal mortgage for you. Call Homebank now, free, on 0800 052 3604.