As the economy slowly recovers banks are being pressured to offer more realistic and attractive products to consumers. Roughly this time last year finding mortgages requiring less than 25% deposits was a rather and often un-fruitful task. Now we are seeing an increase in lending and a decrease in the amount of deposits required. We are still a long while away from the resurgence of 100+% mortgages.
There is a slight sting in the tail with this news which is that as deposits decrease, interest rates increase. It has been speculated that for every 5% of deposit 0.5% of interest is removed. These figures are purely speculation but seem to follow a trend in today’s financial institutions.
With low house prices and easier mortgage access, now is the time to buy, many experts believe that housing market trends can only increase from here on in.
That being said, if buying or selling it is now, more important than ever to seek the best possible advice on markets and mortgages, that silver lined ‘bargain’ may be a financial black hole.
