Money News
14th August 2008
Crunch 'will fuel demand for shared equity mortgages'
Shared equity mortgages are a sound choice for first time buyers and are set to experience greater take-up as the credit crunch continues to impact on the economy, it has been claimed.
According to Hayley Martin, team leader at Click n go Mortgages, one of the principal advantages of shared-equity mortgages is that "you don't have to put a deposit down if you don't have one".
This makes them especially viable at a time when mortgage finance is so hard to come by and when lenders are demanding increasingly large deposits, she added.
Ms Martin explained: "Looking at the property ladder, deposits are the big thing holding people back and [with shared-equity mortgages] you don't have to put a deposit down if you don't have one.
"While property prices are falling, they are still high and a ten per cent deposit is still an awful lot of money."
A Pink Home Loans survey, from July 2008, found that 40 per cent of intermediaries were looking at shared-equity mortgages as a solution in their recommendations for first-time buyers.
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