Since January, the number of loans has fallen by 34 percent, all due to strict lending criteria.
So if you are a mortgage borrower and your mortgage loan application has been disqualified, don’t blame your mortgage lending company. Because, the entire mortgage market is collapsing and hence it is becoming difficult for the mortgage lending companies to offer any easy loans or mortgages.
The data from the Council for Mortgage Lenders reveals that 50,300 loans were made for house purchases in January, which is a clear 20 per cent fall from December 2007. The total loan or mortgage value of £7.8bn stands at 31 per cent less.
Banks are also not taking any chances. They are asking for more and big deposits and offering only smaller loans which are in multiples of the salary received by the individuals.
First-time buyers took out average loans for 88 per cent of a property's value in January, down from 90 per cent in December. They typically borrowed 3.32 times their income.
| Fortunately, these are good times for some. If you have that extra money with which you can invest in a falling real estate market, then you must go for it and forget your investments for 3 to 5 years. | Table of Contents |
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