Miss G London
When Nigel left the project we felt a bit lost actually.
Justin Ryan and Colin McAllister on the BBC’s ‘The Million Pound Property Experiment’.
News and views about the property market
Check in here regularly for updates and our view of how the property market is changing
Mortgages
4th February 2009 - 15:11
The financial information company Moneyfacts has some grim news for would-be borrowers. According to their statistics 64% of all mortgages now require a deposit of 25% of the value of the property being purchased. Not only that but the number of mortgage deals on offer has fallen by 89% since the start of the financial crisis. One quarter of all mortgages will now require at least a 40% deposit. This news will make first-time buyers even more likely to stay in the rental market until lenders become more flexible.
Whilst a return to the ridiculous offers of 125% of value (yes, that was Northern Rock) would be uncalled for, a relaxation of this present mortgage famine would be helpful to those trying to get on to the property ladder or those who just want or need to move.
There may be some hope on the horizon however. Some statistics indicate a slight increase in the number of sales of property, perhaps indicating that potential buyers are out looking for bargains. However, property prices are still expected to continue falling throughout 2009.
