29 Apr

Availability 'key problem' in the mortgage market

Availability 'key problem' in the mortgage market

Availability rather than affordability is the main problem facing those looking for a mortgage at the moment, according to MoneyExpert.com.

The financial advice website suggests that those who do not have a substantial deposit or equity in their home are likely to find their choices "severely limited" when it comes to getting a mortgage.

In particular, it singles out first-time buyers and people renegotiating their mortgage for the first time as the ones likely to be worst affected.

According to MoneyExpert.com's research, the average person remortgaging today will need a deposit of 15.5 per cent to take out a fixed or variable product.

In addition, it found that one in five fixed and variable mortgages now come with a maximum loan-to-value of 75 per cent or less.

"When disposable income is already at breaking point for many, it is frankly impossible to see how those with limited savings will find a way to get a foothold on the property ladder," the website said in a statement.

Yesterday, it urged homeowners struggling with finances to look into mortgage payment holidays as a possible option.

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