Mortgage Market Shows a Few Signs of Recovery | Equity Finance
Wednesday 2nd June 2010
by Shaun Vickery, Mortgage Advisor and Director of Equity Finance
It is still very early to predict a return of the availability of sub-prime mortgages
and, quite honestly, that's probably a good thing. In the years leading up to the
credit crunch in 2007 too many mortgages were granted with insufficient regard to
customer's credit worthiness or ability to meet the repayments as lenders scrabbled
for increased market-share.
However we are presently seeing a huge demand from genuinely good quality applicants
who, whilst they may have had financial difficulties in the past, are able to evidence
an improved situation. Unfortunately, until now, lenders have been continuing to
turn their backs on them because many 'high-street' lenders continue to 'cherry-pick'
applications, often based purely on an automated computer decisioning system know
as 'credit-scoring'.
Over the past couple of months we have started to see competition amongst lenders
increase with evidence of reducing arrangement fees, reduced minimum deposits and
the re-introduction of a few products made available to a limited number of intermediaries
like ourselves where some CCJ's, defaults, or missed mortgage payments in the past
are allowed.
Clearly there are still concerns over a possible double-dip in the economy, rises
in un-employment etc. as the new government's measures take hold but it appears
that the pendulum is starting to swing back somewhere closer to normality. I hope
that means that we are able to help an increasing number of deserving clients in
the months ahead.
If you have had difficulty in obtaining a mortgage or have already been declined
please contact me or a member of my team on (01244) 659000 or email me on
shaunv@equity-online.co.uk.
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