Mortgages from abroad now offering better value than those at home
Cheap, available mortgages from Swedish, Israeli and Chinese banks are becoming increasingly popular as the UK mortgage market continues to splutter along in first gear. The eligibility criteria is also looser which could be good news if you’re self-employed or have quirky income patterns.
According to The Times, Bank Of China is offering tracker rates from 3% for borrowers who can provide a 25% deposit, with a minimum fee of £995, and is undercutting UK lenders on buy-to-lets. HSBC are offering a similar tracker deal, but some applicants are having to wait as long as eight weeks before getting a decision, meaning that they are likely to miss out on the house they’re trying to buy.
The number of mortgages available from UK lenders has fallen by 59% to 2,242 over the past year and one in ten home sales have collapsed in the past three months after the potential buyers were unable to obtain funding.
Have you been stuck in the mortgage mire lately and would you consider looking outside of the UK as you attempt to raise the cash for a house purchase? Are the banks shooting themselves and the UK economy in the foot with their stingy approach? Or will the whole thing result in another credit crunch? Let us know what you think in the little box underneath this bit.