Mortgage Options Narrow In Britain

From the BBC:

The number of mortgages available to buyers with a 5% deposit is shrinking fast, as lending is cut because of the credit crunch and falling house prices.
There are only 60 such deals currently available from lenders, according to the information service Moneyfacts.
Mortgages for 100% or more of a property’s value disappeared at the start of the year and the range of all mortgage deals has since shrunk.
“Every week or so another lender drops out of lending at 95%,” said Aaron Strutt of Chase de Vere mortgage brokers.
Disappearing deals
During August new mortgage lending was just 5% of the level seen the month before.
“There is so much risk to lenders that they want to concentrate on lending to people with a lower risk profile,” said David Hollingsworth of mortgage brokers London & Country.
Higher charges
Borrowers with small deposits, of less than 10%, are also being asked to pay high up-front “higher lending charges”.
The current offer from HSBC is restricted to graduate customers who have had a student account with the bank.
The number of 90% deals is also shrinking fast, though not as dramatically.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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