ABSTRACT
This chapter examines the key lending criteria which can affect a buyer’s ability to buy a property, different ways banks have sought to help first-time buyers get on the property ladder and strategies to repay a mortgage. Mortgage lending provides funding for over 70 per cent of property transactions in UK. This means that banks play a pivotal role in property market, as their lending criteria determine who can obtain a mortgage and the volume of property transactions. For many buyers, especially first-time buyers, availability of high loan to value mortgages is important because it means the people only need to put down a small deposit. However, availability of such loans is dependent on a lender’s view of the future movements of the property market. JBSP mortgages are a niche product and are only offered by a limited number of lenders. Homeowner’s equity represents the amount that has been paid off plus any appreciation in the value of the property.
