Getting a home loan or mortgage has always been very easy up until recently. All you did was either pop down your local bank or building society and have a chat with the mortgage advisor who discussed all your options.

And the many options were there for your convenience and for the lenders to be able to package a homethat suited you best. here was always plenty of mortgage choices. You could choose from a repayment or an endowment mortgage. You could choose from endowment or tracker style mortgages. All these were designed to encourage and entice people to take out mortgages and effectively get themselves into debt.

However the situation has changed fast and banks are extremely cautious about their lending. Lenders are now under greater pressure than ever to be cautious when providing home loans to borrowers. The regulatory bodies have issued very stern warnings to lenders that they need to clean their act.

It’s no longer possible for people to get very large mortgages. One mortgage type called the 100% mortgage will now be a thing of the past. This enticed lots of borrowers onto the property ladder where they could not afford  a deposit. This was not a good move by lenders as lots of overstretched borrowers whad taken on mortgages they could not repay.

And as a result of new regulations the lenders have become extremely wary about lending in general. As a result only those with a good credit history are benefiting from goo deals as lenders tighten their lending criteria. This in itself is not a bad thing but it is certainly having a poor effect on the property market. Now you have loads of people unable to get a mortgage and those who already have a house cant move because they are unable to find buyers. This domino effect will remain until such time as banks relax and gain more confidence with the housing market again.

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