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Mortgages in RecoverySince April of 2008 the number of mortgages being applied for has increased. About 50,700 mortgages have been applied for and awarded in April. This is up 5000 from March; however it is still 36 percent lower than the numbers seen in 2007. The Council of Mortgage Lenders is understandably concerned about the numbers. Part of these numbers being released is directly related to first time home buyers. In other words the first time home buyers are not getting the home mortgage loans they need in order to buy a home. Instead they are either being rejected or not even trying giving the information on mortgages at the moment. Numerous banks in the UK are asking for huge deposits to be placed on a home. First time home buyers don’t tend to have the savings in order to put money towards the housing price. The deposit amount is up by more than 12 percent from last year. They are also only allowed to take out a loan for 3.3 times their income. For example, if you make 100,000 a year you can only take out 3.3 times that in a loan. Since several of the homes are requiring a huge amount on the sale price combined with the need for a deposit, this is becoming more difficult for the buyers to get a mortgage. The good news is that the market seems to be shifting. The numbers of refinanced mortgages is up by 14 percent from last month to this current month. The numbers are still low with a difference of 38 percent between this year and last year, but about 32,300 remortgages have been awarded increasing the amount from last month by almost 14 percent. Lending on mortgages is still going to be restricted for the next few months, but the CML is seeing changes. Back To Financial News June 2008 100 Percent Mortgages |
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