Getting a mortgage becoming increasingly difficult

Recent reports have shown how getting a mortgage in the UK has become increasingly difficult, as the credit crunch continues to take its toll and affect consumer lending.

Many lenders have tightened up on their lending criteria, and this has resulted in real difficulties for many consumers that are looking to take out a mortgage.

Many consumers are unable to get affordable rates on a mortgage for a number of reasons, such as not having a high enough deposit or having damaged credit.

Many lenders have already hiked up their rates, some just prior to the latest base rate cut, which has left many homeowners and potential homeowners struggling.

One industry official said: “Conditions in the mainstream mortgage market are now rapidly deteriorating at a frightening speed, with lenders changing their pricing and/or criteria at the fastest pace in living memory, and probably ever.”

Since the credit crunch took a hold in the UK lenders have had to really scale down on their mortgage lending, bump up the cost of borrowing to make up for their own higher borrowing costs, and have tightened up on their lending criteria in order to try and cut back on lending to higher risk customers.