Some borrowers can still get good deals on mortgages

Industry professionals have stated that despite the chaos that seems to have hit the mortgage markets, and the reports of doom and gloom when it comes to getting a mortgage, there are still some affordable deals on offer to many consumers.

Officials from mform described the panic in relation to the mortgage market as ‘overdone’, and added that the difference in interest rates for those with a 90% loan to value ratio compared to those with a 50% loan to value ratio was nominal.

One official from the group stated: ‘Mortgage customers are undoubtedly facing challenging times but they are not as bleak as is being painted. People coming off two, three and five-year fixed rate deals this year will face higher monthly payments. ‘However they will have benefited from house price increases and that will have enabled them to build equity and to substantially improve their loan-to-value.’

However, this opinion is not mirrored by many other industry officials. Officials from Protiviti, the risk management group, have stated that things are already very bleak for mortgage customers and mortgage lenders, and the situation is expected to continue getting worse.

A massive 85% of mortgage brokers have expressed opinions that mortgage customers will face severe difficulties in securing finance as a result of the effects of the global credit crunch, which has seen far tighter credit conditions come into play.

One official from Protiviti stated: ‘Banks and building societies are not surprisingly reviewing their lending criteria and overhauling their risk management programmes in the light of the current market and economic situation with the aim of reducing their exposure to bad debt.’