The news on council house mortgages continues to get worse as property values fall across the UK. Currently, few banks are offering new council house mortgages and like many other loan products, the rates for these loans are going up. This has created an issue that is affecting many council house mortgage holders that are trying to keep up on their payments.”With the short- and medium-term economic outlook not looking too promising, homeowners are less likely to move home due to falling property values and banks lowering the maximum loan-to-values available. There is now new scope for a borrower to possibly take a more prudent approach to look past previously popular two-year deals and look for longer-term stability,” commented Darren Cook, a mortgage expert with MoneyFacts.”The squeeze on mortgage funding has led many lenders to tighten their lending criteria. While tighter criteria make it more difficult for some borrowers to obtain a mortgage, they also reduce risk in a slower housing market. There has been a resurgence of fixed-rate lending as borrowers are seeking certainty. This trend is likely to continue as the anticipation of future Bank base rate cuts has diminished,” added Michael Coogan, the director of the CML.
Related reading: Council House Mortgages
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