It is becoming increasingly difficult for borrowers to take out a new mortgage even on traditionally secure loans such as loans-to-value and for borrowers with a clean credit rating.
Banks and mortgagers have expanded their measures to limit mortgage lending from deals that only effected first time buyers and borrowers taking on riskier loans to a much wider selection.
Last week saw a wide selection of mortgage deals being pulled with little or no warning. A number of the withdrawn deals were not particularly competitive or risky, showing that banks are now targeting everyone in their efforts to protect their loans.
“The remortgaging market has become tougher because there is simply less money available as a result of the liquidity squeeze,” says Melanie Bien, director at Savills Private Finance.
“Lenders are choosing to hoard cash rather than lend it to each other which means fewer mortgage deals and those that are available are slowly creeping upwards in price.”
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