Mortgage market confidence "shaken"

23-Sep-2008

First-time buyers (FTBs) looking to get on the property ladder might see higher mortgage rates following recent events, one expert states.

Melanie Bien, director of mortgage broker Savills Private Finance, says confidence in the financial markets has been shaken.

She attributes this to the collapse of Lehman Brothers, the bailout of insurer AIG and the takeover of HBOS by Lloyds TSB.

"This is discouraging lenders from lending to one another, pushing up the cost of borrowing in the money markets," Ms Bien explains.

She expects this to lead to higher rates on new fixed-rate and tracker mortgages.

Last week however, property investment firm 1st Asset predicted that the government would be looking to "shore up" UK banks in order to bring confidence back into the mortgage market.

Managing director Andy Smith stated that FTBs with cash or smaller mortgages would benefit from what he called the best time to buy property in the last 20 to 30 years.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

NAEA urges homebuyers to be patientNow is "one of the best times ever" to buy property FTBs could face tough times

2012: May | Apr | Mar | Feb | Jan

2011: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2010: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2009: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2008: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar