7 Oct

Homebuyers need bigger deposits for houses for sale in Britain, report shows

Homebuyers need bigger deposits for houses for sale in Britain, report shows

A report has been released which indicates that homebuyers need bigger deposits in order to secure mortgages to purchase houses for sale in the UK.

Yesterday (October 6th 2010), e.surv Chartered Surveyors published findings which revealed that during September there was the biggest drop in loan-to-values (LTVs) for the year.

The average LTV was 58.1 per cent in August, meaning that homebuyers needed to produce a 41.9 per cent deposit on the value of the house they wanted to buy.

However, the following month the average LTV was 57.2 per cent, with potential homeowners having to provide a deposit of 42.8 per cent on the price of the property.

These figures highlight the difference in mortgage lending over the last few years as in 2006, homebuyers got on average a mortgage of 75.9 per cent LTV on properties below £125,000.

The Council of Mortgage Lenders recently reported that in August gross mortgage lending was down by 14 per cent on the previous month, from £13.3 billion to £11.4 billion.  ADNFCR-1222-ID-800104665-ADNFCR

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