30 Dec

Affordable mortgages ahead, says expert

Affordable mortgages ahead, says expert

A housing expert has predicted that there could be more affordable mortgages on the market over the next 12 months as a result of renewed competition between lenders.

Technical manager at mortgageforce Katie Tucker stressed that this battle for customers will be the most important change taking place in the market during 2010.

She stated 90 per cent loan-to-value mortgage deals could lower to an affordable level of about five per cent interest at most banks and building societies, which could help first-time buyers.

Ms Tucker pointed out that many institutions have been "over-cautious" this year and this has stopped valid borrowers from taking on financial products.

"The lenders will return to competing with each other. As a result of that, they will be more flexible with their credit scoring and underwriting again," she added.

According to figures recently released by the British Bankers' Association, lending for house purchases reached 44,713 in November, up from 42,552 in October.ADNFCR-1222-ID-19534385-ADNFCR

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