18 May

Mortgage options 'more plentiful than people think'

Mortgage options 'more plentiful than people think'

There are more options concerning home loans than many consumers are aware of.

This is according to unbiased.co.uk, which suggested that public perception of the mortgage market is lagging behind reality.

It said that while a fifth of people polled believed they could only borrow between 0.5 and 2.5 times the level of their salaries, in fact the average amount provided by lenders stands at 3.3 times annual earnings.

In addition, two in five respondents thought they would require at least a 20 per cent deposit to secure a mortgage, whereas some lenders are providing loans against smaller amounts.

Unbiased.co.uk chief executive Karen Barrett commented: "Many lenders are now relaxing their lending criteria, offering ... around four times or more an individual's income."

She added that the home loan sector has experienced "tremendous change" over recent times.

Recently, the Council of Mortgage Lenders revealed that the average rate paid on outstanding mortgages stood at 3.66 per cent in March this year.

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