Deposits for Homebuyers Increase

Banks and building societies are demanding large sums of money as upfront deposits from those taking out new mortgages. The direct impact of this is that many people are facing being priced out of the market and those wishing to remortgage are also struggling to find adequate deals for their mortgage requirements.

Most banks and building societies are demanding deposits of at least £20,000, a hefty cost that is unrealistic for the majority of first time buyers. Furthermore, the best rates on offer are only available to those with a 40% deposit which is, on average, around £50,000. In London and the South East, deposit requirements are likely to be even higher than this.

With first time buyers unable to attain mortgages, house sales continue to slump leaving those who need to sell in a difficult position. In addition to this, mortgage approvals are grinding towards a halt, with lending at an all time low.

A government report released this week revealed that mortgage lending has dramatically reduced over the past year, dropping 52% since last October. During October 2007 mortgage lending was at a healthy £4.74 billion, however, October 2008 has seen this figure tumble dramatically down to £2.9 billion.

The report, undertaken by former HBOS chief executive, Sir James Crosby, also found that lending is likely to fall further and by 2009 will fall below zero. As lending criteria continues to tighten it seems that the recovery of the housing market is a long way off despite government interventions. The recent 1.5% rate cut should provide some assistance in attaining good mortgage deals but it is dependent upon banks passing on this rate cut.

The current economic climate has instilled a degree of uncertainty amongst homebuyers, many of whom are holding off until a good prediction can be made as to when the slump will reach its lowest point. This reluctance to buy is directly impacting those who wish to sell their homes as soon as possible. If you are keen to sell your home fast, Swift Capital may be able to help you.

Swift Capital make it possible for those who need to sell their homes quickly and release equity. We have an enviable history of helping those who many be facing repossession and in most cases we can sell your home. For a quick and easy solution to selling your property, contact Swift Capital today.

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