There Are Now More Mortgages And Remortgages Available Without The Need For A Large Deposit

We have recently witnessed almost the worse conditions ever in the property sector.

Until a few years ago, the largest percentage of the population, just as always, wanted to own their own home, but at that time, unlike the present, those who wanted to become property owners were in a position to achieve their ambition.

This was because mortgages were readily available, as were the other home loans of secured loans and remortgages.

Not only were they easy to obtain, but they were avalaible up to 125% of equity.

This meant that most people, providing they were in employment or self employed, were able to purchase their own home even if they had no disposal money at their back, because 100% plus mortgages meant that they did not have provide to a deposit.

An example of this is that if a property was worth 100,000, a mortgage or remortgage of up to 125,000 could be granted.

Another aspect of the homeowner loans sector in the past was the fact that 50% of them were granted on a self certification of income whereby the borrower declared his own income without the lender asking for any concrete proof.

This was of course rather full hearty, as many people were inclined to grossly lie about what they earned in order to buy their dream home which at the end of the day they simply could not afford.

In those days houses, especially in up market new housing estates, were snapped up with many already being sold before the first brick was layed.

The property scene was very different during the last few years and also up to the present and many of the previous so very popular brand new properties remained unsold, and these previously so desirable sites looked like ghost towns.

The much stricter underwriting for mortgages added to the problem, as for some time the maximum loan to value for home movers was restricted to 85% and for first time buyers it was even worse at only 75% LTV.

This lead to many being unable to get their first foot on the property ladder as they could not raise the 25% deposit required, meaning that many younger people in particular were forced to rent their home causing rents to go up as demand began to exceed supply.

Demand for mortgages and remortgages in general decreased due to the fact that falling house prices meant that many people did not have enough equity to obtain a low interest mortgage deal.

Now however, we are starting to witness an improvement to the availablity of mortgages and remortgages, as lenders appear to be bending backwards in their efforts to lend money.

Recently for example, the Santander increased the LTV for first time buyers to 90%, and now the new announcement by the Nationwide of a 95% mortgage and remortgage is even better news.

Those hoping to buy their first house will really benefit from this, as raising a 5% deposit is much easier to raise than one for 25% of the purchase price, and hopefully it will not be long before more people can realise their dream of owning their own property.