Mortgage Lenders Offer Up To Six Times Salary by Finance News Bulletin

Published: 24/05/07

UK mortgage lenders are offering some first-time buyers house loans up to six times their annual salary at the same time as this good information for some first-time buyers trying to get on the property ladder, some sense it may lead to financially misery as some populace buy homes they eventually cannot affordHousing charities and citizen recommendation groups have criticised the increased loans and are concerned that some buyers will purchase homes they can ill-afford as UK house prices rocketGone are the days when most lenders were only willing to lend up to three era a persons salary as loan amounts increase Last November saw Abbey proclaim it would offer mortgages of up to five times a being's salary and this trend has continued with some high-street lenders such as the regal Bank of Scotland, Northern Rock and the Alliance & Leicester lending up to six times an yearly salary

Lenders, however, countered claims that the rise in loan amounts was reckless, citing that buyers had to satisfy strict "affordability criteria" in arrange to qualify for such loansRBS said few would be clever to receive loans of six times salary, saying only "outstanding" circumstances would result in a buyer being approved for such a loanA spokesman for RBS said: "RBS operates an affordability-based move toward to mortgage lending In very exceptional cases, this move toward could mean we may lend up to six times income

However, this would be unusual"However, some feel the growing amount of cash being lent to pay money for homes may place a severe financial burden on some homeownersArchie Stoddart, director of protection Scotland, said: "Ordinary families are being forced into taking on the load of mortgages due to the dire shortage of excellent affordable rented housing Shelter Scotland is calling on politicians to finance an extra 30,000 affordable rented home to tackle this

"The main difference between a mortgage and other types of loan is the fact that the interest rate changes throughout the word of the loan Why is this And which type of interest-rate agreement is best“Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it”

Words that have to be on paper on any promotional fabric for mortgages or home-owner secured loans Is this the only reason you should keep paying your mortgageYour credit rating is something that contrary to well-liked belief you can have some control over Here’s how and how it might have an effect on your mortgage application

It’s easy to say “go and investigate the market place to find the cheapest mortgage”, but is it that easy to actually do it and how do you know that you have really got the best mortgage deal when you’ve overEarly Redemption Penalties - Loan Extras - Debt Consolidation awful Credit - Choosing a Personal Loan - Loan Penalties - cash Saving Loan Tips -

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