Mortgages - Millionaire Mortgages Hit By Credit Crunch - 29/02/2008

 
 
  The US credit crunch hit the UK hard at the lower end of the mortgage market. First time buyers and those with poor credit rates, suddenly found themselves struggling to find a mortgage and get onto the property market. But now the top end of the mortgage market is also being hit, as many of Britain’s banks and building societies withdraw their funding offers for those applying for million pound mortgages.

Previously high earners would be able to find a mortgage that was worth more than three times their salary due to the big bonuses they earn. Now lenders are becoming increasingly reluctant to large sums of money based on bonus payments and it has become extremely difficult to find a mortgage for more that 96% of the value of the home.  High earners are now finding themselves priced out of markets that were once open to them as they do not have a high enough base salary.

A representative for the broker firm Cobalt Capital said that more questions are being asked of high-net-worth individuals at the underwriting stage of the mortgage application. This shows that lenders are being more prudent across the whole market not just the lower end.

   
 
     
 
 
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Mortgage News Latest News
28/11/2008 - The rate of falls in house prices slow down. Despite the continuous drop in house prices during November,...
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27/11/2008 - HSBC and Northern Rock raise interest payments. There was bad news for consumers today, with the...
Read More
26/11/2008 - Mortgage approvals fall by 18% in Scotland. Latest mortgage figures have suggested that approvals for home...
Read More
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