Credit crunch hits mortgage deals
News Category: Industry News
Published: 15-Nov-2007
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One in four mortgage deals have been hit by the global credit crunch, according to a new survey.
The study, undertaken by GE Money Hone Lending, discovered that 23 per cent of mortgage deals were affected by the worldwide changes, with 87 per cent finding lenders had withdrawn or delayed deals.
At the same time the withdrawal of products by mortgage lenders led 17 per cent of brokers to report that they had seen deals not being honoured after they had been agreed in principle.
"A staggering 23 per cent of all mortgage applications have felt a direct impact from the current global credit crunch," said Duncan Berry, sales director at GE Money Home Lending.
"During these challenging times there will inevitably be changes to ranges with shorter notice periods, but communication is key and lenders should endeavour to give brokers reasonable notice to alterations in product ranges and changes to pipeline dates," he added.
The Council of Mortgage Lenders recently revealed mortgage lending fell by £34 billion between August and September, a figure which could affect any landlord looking for a mortgage deal.
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