First time home buyers could see their debts spiral as research finds prospective homeowners with small deposits are paying a lot more for home loans. Defaqto found that mortgages for 90 percent of the value of a property are significantly more expensive than those for 75 percent, which could have a big impact on a buyer’s monthly debt management. The financial research firm says there was little difference 3 years ago. Higher interest rates for those with smaller deposits could see many homeowners debt problems deepen and the need to resort to IVAs or even bankruptcy in some situations. David Black, banking specialist at Defaqto said: “Since the credit crunch the situation has changed significantly and those seeking a higher Loan-to-Value (LTV) mortgage have to pay significantly more.”
Small deposits for homes mean more debt
April 20, 2010 By
