Advice given amid investment property loans squeeze

photo credit: xiaochijin

A financial services firm has warned UK home buyers and property investors must become “financially savvy” if they are to get hold of mortgages.

People struggling to get credit to buy new homes for sale should not chase borrowing if they are struggling to secure it, said Spicerhaart Financial Services.

The advice came after HSBC bank said it was raising interest rates on some mortgage deals, with other lenders expected to soon follow suit.

Spicerhaart Financial Services operations director Steve Cox said:

“In the current climate where the financial markets are in a tumultuous state, it is essential that borrowers remain on top of their finances and look after their credit ratings as best they can.”

The company advised borrowers to keep a lid on credit card and store card applications ad also said it was important to keep track of when mortgage deals end and plan ahead.

Borrowers looking for investment opportunities were dealt a blow earlier this week when another UK lender, Bradford and Bingley, said it was cutting 370 jobs.

Many of the positions which are being ditched relate to the bank’s mortgage processing and advising services, which could see a reduction in the number of investment property loans available.

Related posts:

1. UK Mortgage borrowers go for short term fix
2. Big UK rate cut may help holders of investment property loans
3. Hard year ahead for UK investment property loans market
4. BBA figures suggest fall in UK investment property loans
5. Banks pressure over rates for property investment loans