Lenders Criteria Changes

Here's a Headline for you Abbey will now only lend 75% of the property value on new build flats and only 85% on new build houses.

Isn't it a wonder why many house builders are feeling the pinch and cutting back on the new properties that they are building. The knock on effect of the credit crunch is affecting us all, as well as the homeowners not being able to remortgage to cheaper deals, Sub prime homeowners not being able to remortgage at all and first time buyers having to find deposits. Here we look at recent changes to some of the lenders mortgage criteria over the last few months.

High Street lenders

Abbey have reduced their LTV's they are willing to lend to 90%. last june they launched a 125% scheme what a difference a few months make.

Cheltenham & Gloucester another lender that has reduced their LTVS over the last 3 months from 100% mortgages to 90%

Most of the High Street Lenders have reduced their loan to values over the last 4 months and all the lenders that used to lend over 100% have now reduced those loans down to 95% and below.

Sub Prime Lenders

They really do not get much of mention in the press except that they are the source of the majority of repossessions.

However Sub Prime lenders are in decline and starting to ceased to trade

SPML (Southern Pacific Mortgage Lender) have stopped lending in the uk altogether take a look at there website.

Mortgages PLC, London Mortgage Company, High St Homeloans, Preferred all this lenders also have decided to stop lending at the moment.

More Updates coming soon