Mortgage lenders leaning towards cash-laden buyers

The credit crunch is starting to afect mortgage borrowers who are unable to muster a big deposit.  Nationwide has told its customers wanting a loan of more than 75% of the properties value that they will pay higher interest rates to reflect the increased risks involved.

 Nationwide increased its mortgages for home buyers wanting to borrow 75% or more by 0.2%.

 The move will undoubtedly hit first time buyers the hardest especially when you consider that the UK average deposit for a home is 20%.

 To put things into perspective, on a Nationwide home loan for £150,000 a borrower would need to save £37,500 to get the most competitive rates of 5.68.  Last week that deposit would have been £15,000 to get the same rate.

This entry was posted on 26/02/2008 at 11:47 pm and is filed under UK Interest rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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