As a result of the pound crashing amid soaring interest rates, the mortgage market has been in chaos with rates expected to increase dramatically
September 28, 2022 6:11 pm
Around 115,000 homeowners could find it harder to remortgage without finding extra cash if house prices fall by the 10 per cent currently predicted., using data from the Financial Conduct Authority, shows that, of the 1.09 million people who bought homes two years ago – many likely to have taken out two-year fixed loans – just over 10 per cent had a deposit of 10 per cent.
Should house prices drop by up to 15 per cent from January 2023, as forecast by Credit Suisse, those who bought with a small deposit could find themselves at the sharp end of a correction. Some of these people may find that they don’t have the equity to allow them to re-mortgage. In such a situation their bank will ask them for more money to secure the loan, and should people not have friends, family or other forms of savings to rely on, they could be forced to sell.
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