15 September 2009

Mortgageforce has found that the deposits demanded by lenders have been dropping month by month: their average deposit for First Time Buyers has decreased from 28.6% (June) to 25.4% in July and 21.25% in August Tucker comments: "More generous deals are available; the ongoing stability of house prices reduces the risk of negative equity and repossessions that lenders are keen to avoid, so we should see more accommodating terms from them now. "Be wary that, unlike 'trackers', 'discount' rates may increase even if the official Bank Rate (currently 0.5%) does not: because they are a discount from the lenders' own SVR rate, which is changeable entirely at their own whim. "Although tracker and discount rates are looking very low currently, first time owners or anyone on a restricted budget should consider very carefully whether they could continue to afford their mortgage payments if that rate does increase by a few percent." This excerpt was taken from the myintroducer.com website.