Lenders looking for 'qualified people'
Published On 19 December 2007
Despite the effects of the credit crunch, mortgage lenders will continue to focus on 'better qualified' people - even those with student or graduate debt.Helen Adams, director of FirstRungNow, said that mortgage providers are more eager to lend to people who have a greater chance of being able to repay the loan further down the line.
"Mortgage lenders are targeting better qualified people and lower risk people as a result of the mortgage crunch, as you'd probably expect," she said.
Guarantor, professional, joint and graduate mortgages are all products that are likely to prove more popular in the future, Ms Adams said.
"The lenders aren't necessarily put off by people being credit averse or being in debt despite the market conditions, because with a professional or graduate mortgage they can hope those debts will be paid off," she added.
Graduate mortgages tend to offer features such as low or zero deposits and 100 per cent loan to value to help people who have just left education onto the property ladder.
