Different types of borrower 'need to be accommodated by market'

A number of different types of borrowers need to be accommodated by the mortgage market if conditions in the sector are to improve, according to an expert.

Katie Tucker of advice firm John Charcol added that while mortgage rates may stop rising in the aftermath of the Bank of England''s £50 billion aid package, it is likely they will not return to last year''s levels.

She also said that the sector must be prepared for the possibility that would-be first-time buyers may choose to save a deposit while property values fall and urged those concerned about meeting payments to talk to an expert.

"It''s vital to call your lender and inform them that if you think you''ll have budgeting issues; far from alerting them to potential missed payments, it will flag you up as proactively taking responsibility and asking for more time," she explained.

In a recent interview for the Daily Telegraph, the editor of Which? Money, Martyn Hocking, said shopping around for the best mortgage deals can reduce the impact of the credit crunch.

back