Eurozone Credit crunch will the best mortgage rate deals disappear.
Amid news of the eurozone crisis there are fresh concerns of a second credit crunch which could mean that the best mortgage rate deals offered by lenders could begin to disappear. Home-owners looking for a mortgage are being warned to make a decision soon before the best rates start to climb.
Problems in the eurozone have resulted in an increase in funding costs for most lenders. This increase is predicted to start to feed through to UK mortgage products, which means that the best mortgage rate deals on offer could start to decline in number. Although lenders appear more competitive, home-owners are being reminded that the amount of lending in the property market has not increased. House buyers are warned that lending levels could fall back depending on how the eurozone problems pan out.
A spokesperson from FirstRung Now.com commented voicing concern over new home-owners, who see lenders high deposit demands as a too high a hill to climb. They added that FirstRung foresee far more hesitancy towards first time buyers by lenders. First-time buyers are recommended to try to keep saving for that ever important deposit and enlist the help of parents and grandparents where possible.
For those home-owners wanting to remortgage the advise from experts is act now. Lenders increased funding costs will start to filter through to their rates and so borrowers are warned to make a switch before the best mortgage rate deals are pulled by lenders.
