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Large Deposits the Key to Mortgage Success
According to recent industry figures, mortgage rates are back to where they were last August - when the credit crunch reared its head.
The average rate on a two-year fixed rate mortgage is now 6.59% - just 0.3% higher than in August 2007 and down from 7.08% in early July.
Tony Rice, of specialist mortgage brokers TMP Mortgage Zone, said: "Whilst it is good to see rates getting back to where they were a year ago, many of the better rates are only available to those borrowers with big deposits. The same survey figures suggest that a 20% deposit is becoming the norm. Furthermore, whilst last summer there were over 30 lenders offering 100% mortgages, now there is only 2."
The survey also found that there were currently 3,748 mortgage products on the market compared with over 13,000 in August 2007. Not all borrowers will be able to put down a 20% deposit, so with less choice it becomes even more important to use a specialist mortgage broker who can give you access to thousands of products from all the high street and specialist lenders.
[ 29-08-2008 ]
