Finding the best mortgage deals has become alot more difficult recently with many big mortgage lenders withdrawing mortgage products and increasing the cost of mortgages. within the past month the number of mortgages on offer has fallen by 40%, with big names like first Direct, Co-op Bank and others restricting the number of new mortgages.
The difficulty of getting a mortgage has encouraged many customers to borrow through alternative means such as credit cards and unsecured loans.
Finding the best mortgage deals has become a lot more difficult because the gap between the bank’s commercial rates and the bank of England Base rate has risen. For example, at the moment the 3 month libor rate is 6%, whearas the Base rate is 5.25%. The gap between the base rate and the 3 month libor rate has increased due to the shortage of funds in credit markets. With the increased difficult of getting a mortgage it is harder to find a cheap mortgage. However, there are still some things worth trying.
- Search online to make sure you are able to check less well known mortgage lenders. Often it is the big mortgage lenders who are more expensive.
- Look around at all the different mortgage products, consider getting a longer term mortgage to keep it affordable.
- Saving for a deposit will definitely help in the current climate mortgages with 95% LTV or higher are likely to attract much higher rates.