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‘90% Mortgage criteria set too high to reach’

Brokers have called on lenders to do more to make “theoretical” 90 per cent mortgages accessible to first-time buyers.

This week, the Intermediary Mortgage Lenders’ Association revealed that 58 per cent of advisers were unable to place would-be first-time buyers with a homeloan in the last quarter of 2008. Advisers blame strict credit criteria for the lack of successful 90 per cent mortgage applications.

Quantum Mortgages director Fahim Antoniades says: “These 90 per cent deals are just theoretical. They do exist but because the borrowers’ credit scores have to be so amazing that the lenders are essentially saying they do not want the business.

“These deals are placed on such a high shelf that no one can reach them. It is almost a slap in the face to borrowers who have spent a long time saving their 10 per cent.” Savills director Melanie Bien says: “Last month, one of our brokers had a Nationwide representative confirm that they were doing 90 per cent deals in branches but the credit score was so high that very few clients obtained one.

“Another broker was told off the record by another lender not to send in anything over 75 per cent as it was unlikely to get approval due to the credit-scoring criteria.”

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