Why Are 90%+ LTV Mortgages still Expensive?

Talk about pent up demand, I’m convinced there are hundred of thousands of people out there just like you, who have some sort of deposit but can’t afford the higher interest rate of the mortgage.

How frustrating for people. Frustrating for not only buyers bu also sellers because a lack of 1st time buyers also affects them in the grand scheme of things.

Sure there are more products available http://www.mortgagerates.org.uk/news/christmas-comes-early-for-first-time-buyers/

But why are rates and availability of mortgages still a lot higher for 90% LTV or above?

Good question. In my opinion it’s because borrowers who borrow relatively smaller amounts of money are viewed as riskier bets.

So again it’s computer says no time. You can have an excellent credit profile but be ruled out because of the lack of deposit you have.

Not very fair I know but this is reality. Of course the best thing you can do is make sure you have access to all resources possible to make sure you are aware of products and options open to you.

For instance many people are considering buying jointly:

http://www.refinance-home.co.uk/homeloans/first-time-buyers-tempted-back-to-market/

And there are many other strategies you can look at, you just need to know were to look.

In Your Service,

Jon Bieri

7 Reasons Why Home Ownership Is Vital…

Getting on the housing ladder, is something most people aspire to and if you don’t you should for the following reasons….

1. Most importantly it will make more wealthy over the long term – property prices tend to double every 10 or so years
2. Renting is DEAD money
3. Security, when you own your own house the landlord can’t throw you out!
4. Choices, when it’s your own house you can do what you want, when it’s not you have to ask for permission to do anything
5. When you make improvements, you benefit directly and not your landlord!
6. Owning a property- typically makes you look better when trying to obtain credit
7. And last but by no means least, The FEEL GOOD FACTOR…….

When I bought my 1st property, it was a great feeling telling all my friends and family I had bought my own property.

It felt like such an achievement and it signified more independence.

You are reading this blog so you too now have an opportunity to get on the Housing Ladder. Make sure you seize it!!!

In Your Service,

Jon Bieri

 

 

 

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