Mortgage lenders ‘will start demand deposits’

British financial services firms are likely to demand a deposit from anyone looking to take on a mortgage as trends of recent years are reversed, it has been claimed.

According to the mortgage broker John Chacol, the loan-to-value rates of 100 per cent and over that were available until recently are set to die out altogether in months to come.

This process is likely to result in people making more determined efforts to save a sizable lump sum before taking on a mortgage-related debt management burden, the company has indicated.

A statement from John Charcol read: “This marks a return to our parents’ generation’s philosophy of saving.”

“Some parents may be able to gift deposits but more parents need to keep hold of their own equity to replace the pension funds they have been let down on.”

A report from Scottish Widows recently suggested that people in the UK with grown up children are increasingly being asked to assist their offspring in becoming debt free.

track

Tell others:

shortlink