Sunday, April 23, 2017

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

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Eye-catching new loan deals are attracting first-time buyers in larger numbers: but the parallels with 2007 are growing increasingly uncomfortable

One 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…

April 23, 2017 at 11:53AM

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from Guardian Staff

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