The Turmoil In The Homeowner Loan, Mortgage And Remortgage Industries Seems Set To Continue
November 19th, 2009 by adminSince the advent of the credit crunch, two odd years ago, the home loan indusrty has lived through the most dire period in it’s history. The once buoyant secured loan industry has been brought to it’s knees. Many secured loan lenders have withdrawn completely from the homeowner loan market, and it is unlikely if any of them will resurrect in the near futiure or at all. A large percentage of secured loan, mortgage and remortgage brokers have closed their doors. Some of the more fortunate of these homeowner loan brokers have reinvented themselves and reopened as letting agents. The rented property market’s recent growth is a sign of the chaos in the home loan sector with many people who would previously have bought their property being forced to rent instead.
This has been caused by the tightening up of underwriting criteria and the success rate of mortgage applications has been decimated. Many individuals who would have been accepted for a mortgage in the past are now surprised to frequently see their application being declined.First time buyers have been hard hit by the mortgage turmoil, and this is due to a large extent by mortgage lenders now requiring a 25% tp 30% deposit from first time buyers. This means that even if a first time buyer wants to purchase a relatively cheap property of
