New measures are making it easier and safer for borrowers in the mortgage market.
More and more providers are beginning to advance mortgages to borrowers deemed ’high risk’, while some forms of mortgage insurance are also making a comeback.
Northern Rock last week made waves by announcing the comeback of its 10% deposit mortgages. The bank dubbed the most reckless loaner seems to have regained the confidence to offer larger mortgages again.
Meanwhile the reemergence of companies prepared to underwrite redundancy insurance shows that things must be looking up.
But while there are some good signs, perhaps we’d be better served to employ a cautious optimism. Rates on low-deposit loans are still very expensive, and house prices, according to Northern Rock, are at best ’treading water.’ While the job situation many believe has stabilised, redundancy insurance is a little on the steep side, and insurers won’t pay out if your job’s already at risk.