Mortgage rates could be too much for those with debt problems
Mortgage rates could be too much for those with debt problems
- Thursday, 7 October 2010First-time buyers may find it difficult to obtain a mortgage or get a deposit on a house together as the mortgage market is not lending enough.
This could also apply to those living with
debt problems too as they may have student loans to pay off and could find it hard to obtain the money needed for a deposit.
That is according to Ben Wilkie, editor of What Mortgage, which is aimed at prospective home buyers.
He said: "You can get a mortgage with a ten per cent deposit, but a ten per cent deposit on the average price of a property, plus all the costs that are associated with that, is still at least £20,000 until you can start thinking about it.
"That is a huge amount of money for a lot of people - especially if you have got things like student loan debts and that sort of thing."
e.surv reported on October 6th that if someone wants to buy a £100,000 home, they must find £11,600 for the deposit as most people are offered a 64.3 per cent LTV mortgage.

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