Imagine deciding to pursue a career in the mortgage industry…. A few months of studying, revision and exams followed by several weeks of ‘feet-finding’ and ‘on the job’ learning.
Only to end up in an industry bearing the brunt of the now infamous ‘credit crunch’.
Why do these thing always happen to me!
OK, I know, there are lots of people facing adversity in a changing marketplace and every mortgage broker, every homeowner and every prospective buyer has had to re-think their position and change tack.
But are things starting to settle? It’s been a few days now since any lenders have withdrawn from the UK market and some lenders have even stated to reduce their rates (slightly).
Does this mean we’ve seen the worst of the rate rises or is there more to come?
Higher rates mean that people re-mortgaging now are experiencing higher monthly repayments causing some to feel a very nasty pinch and put off spending on other things.
First time buyers are struggling because many lenders have reduced their maximum lending ‘loan-to-value’ which means bigger deposits are needed.
People with slightly checkered credit histories are now limited to a drastically reduced number of lenders to choose from compared to 6 months ago and like everywhere, rates are higher.
Brokers are struggling because some lenders have opted for ‘dual pricing’ policies which means customers going direct may be able to get better rates than if they apply through a broker. A prime example of lenders biting the hands that used to feed them and a bone of contention for many brokers.
This isn’t new news, more of a summary of where things are at the moment but what does it say about the future?
Yes, there may be more repossessions as people who were already stretched find themselves unable to make their repayments.
Some brokers may find themselves seeking alternative sources of income and many first time buyers may shelve their plans in the hope that house prices will fall into their budget range. But that’s another story….