AMI report paints bleak picture for buyers |
30 2008 |
| The Association of Mortgage Intermediaries (AMI) has published its Quarterly Economic Bulletin and it does not make good reading homebuyers. It points out that some lenders are deliberately pricing themselves out of the mortgage market as the credit crunch continues. In addition, mortgage approvals for purchase have dropped by 40 per cent in the last quarter and all of this despite a number of reductions to the base rate of interest. "As we have seen, these [interest rate] cuts are failing to filter down to the consumer and many lenders are instead increasing their rates to customers," said Richard Farr, AMI director. "We are now seeing a trend of house prices slowly falling, which along with other contributing factors, will mean some people will feel less inclined to move home. "For those who do need to move, the continuing tightening of criteria and product withdrawals makes borrowing home loans increasingly difficult," he added. The global credit crunch has seen a number of mortgage products, particularly 125 per cent and 100 per cent deals, removed from the market.  |
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