Real Estate - Real Estate Investment

Homeowners
who have to remortgage or buy a new property are increasingly finding
doors slammed in their faces as lenders apply stricter credit
conditions. On top of that, mortgage providers continue to rapidly
adapt their products and pricing in response to the current uncertain
conditions.

Meanwhile,
the demand for houses has already decreased. Since the credit crunch
has caused the man on the street to have a general shortage of cash,
buyers for property is in low supply. This is exacerbated by the fact
that many prospective home buyers don’t make the cut any more due to
very strict credit conditions, and fewer and more expensive mortgages
on offer.

While
the effect of the credit crunch on house prices might seem beneficial
to first-time property buyers, leading property experts have warned
that falling house prices would do little to help would-be buyers
because affordability was unlikely to improve. This short supply of
successful first-time mortgage applicants results in fewer cash
for property buyers.