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NewsLenders 'should be creative to attract homebuyers'
Lenders 'should be creative to attract homebuyers'
Posted by Craig Williams
Being creative in the mortgage deals they offer may be crucial for financiers to attract prospective homeowners in the near future, an expert has suggested.
According to Andy Pratt, chief operating officer at Alexander Hall, banks and building societies should be encouraged into searching for more innovative ways in which to provide home loan packages away from the standard ways of operating.
Mr Pratt explained that lenders should begin thinking in "the one per cents rather than the five per cents" in terms of the loan-to-vale rates they come up with in order to avoid being perceived as "archaic" in the post-recession market.
"It is one of those ridiculous things where we talk about 85, 90 and 95 per cent LTV, but why don't we go to 91, 92 or 93?" he asked.
Recent research by uSwitch.com showed that 35 per cent of Britons have added arrangement fees on to their mortgage instead of paying upfront.
18/04/2011 15:41
News category: Property