National Homebuyers: Credit crunch hits adverse credit mortgage market

It has become more difficult for young buyers to get an adverse credit mortgage, spelling bad news if you are looking for someone to buy your property.

[ClickPress, Fri Nov 30 2007] The Council of Mortgage Lenders (CML) says that the global credit crunch has made it very difficult for some first-time buyers (FTBs) to get a deal.

It comes as lenders tighten their criteria in response to the crisis, meaning FTBs who may have been given a loan a few months ago are now being turned down.

"It will be more difficult for people to get adverse credit mortgages since lenders are tightening their criteria," said Sarah Robson, CML press officer.

"If they did have a good credit history for five years straight, that would be taken into consideration – but their previous record would still be there," she added.

Fast cash for home property expert Julian King adds, "There are now so many restrictions placed on FTBs now that the effect of the limited volume of people able to enter the market will cause damage to homesellers.

"Vendors who need to sell property quick will find it increasingly difficult as fewer buyers are available".

Mr King is a director of National Homebuyers, the UK's leading quick property purchase firm. The company guarantees to make an offer to purchase any property in the UK, regardless of its condition or location. The company is also the leading provider of equity release style Sell and Rent Back products.

High interest rates are also preventing people from entering the property market, with the base rate of interest currently sitting at a six-year high of 5.75 per cent.

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