More 'affordable mortgages' in 2010

Date:Wednesday 30th December 2009
Author: Susanna Kavka

The number of affordable 90 per cent mortgages on the market is set to increase in the new year, according to one expert.

Katie Tucker, technical manager at mortgageforce, said that products at around five per cent were likely to become more commonplace in 2010, allowing more people to take their first steps onto the property ladder.

However, she believes that the key to seeing improvements in the market is greater competition between the lenders.

Ms Tucker added: "As a result of that, they will be more flexible with their credit scoring and underwriting again - where they have been over cautious this year and have refused loans to perfectly legitimate borrowers."

Earlier this month, the Council for Mortgage Lenders reported that there had been a ten per cent decline in lending in November. It added that, while there is normally a seasonal decline during the winter months, a drop as large as ten per cent was unprecedented.