First Direct have become the latest bank to close it’s doors to new mortgage customers. The bank will no longer offer mortgages to anyone other than existing customers, following an increase in applications for its home loans as other lenders raise their rates.
Several other lenders including Nat West and Scottish Widows raised their rates yesterday or have tightened their lending rules, contributing to a fast evaporating confidence in the property market.
It seems likely that greedy lenders have now milked the market for all it is worth, and will resort back to the tried and tested system of requiring a deposit of at least 10% from potential customers.
Lets hope that sanity prevails and lenders also go back to lending no more than buyers can afford, rather than five plus times joint income or whatever formula they used.
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