Property News · April 23, 2017

Low rates, tight margins: the mortgage market looks worryingly familiar


Eye-catching new loan deals are attracting first-time buyers in larger numbers: but the parallels with 2007 are growing increasingly uncomfortableOne way to help homebuyers overcome the affordability gap is to cut the cost of borrowing. At a time when the mortgage loan-to-income ratio is back at 2007 levels, homebuyers need all the help they can get. And that is just what the Yorkshire building society has done.Admittedly the borrower must have a 35% deposit and pay a £1,495 fee upfront, but still, someone with a £200,000 mortgage will repay just £744 a month on a 25-year term, compared with £1,123 on the building society’s standard variable rate of 4.6%. Continue reading…

Source : theguardian.com
Read more…Low rates, tight margins: the mortgage market looks worryingly familiar

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