Big deposits 'still key to a mortgage'

Date:Friday 13th August 2010
Author: Max Freedman

Having large deposit is still the key feature to being able to secure a cheap mortgage, in the view of one market expert.

Ray Boulger from John Charcol stated that not having a sizeable amount of savings to put down on a house is one of the repercussions still being felt from the credit crunch.

He explained that borrowers are still being rejected from by lenders at record levels, a stark turnaround from before the economic downturn when people were able to easily access loans, some of which were handed out with zero per cent interest.

Those who are struggling to find a deal are advised to try looking to borrowers outside of the 'big six'.

"Niche building societies, alternative lenders and private banks are also active and this type of lender offers the added benefit of mostly using manual common sense underwriting by a human being," Mr Boulger explained.

It is reports such as this that have led Timothy Lambert from Ducalian to warn consumers to be wary of the conflicting reports that are offered by different areas of the sector.