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11th August 2009
Johnstone Calls for Higher LTV Mortgages
North East MSP Alex Johnstone is urging
banks and building societies to increase the loan to value
ratio on the mortgage products they offer, and to speed up
the application process.
Mr Johnstone said "I appreciate that
mortgage lending is on the increase, however people are
still struggling to come up with the substantial deposits
that are being demanded."
"Some financial institutions are demanding
up to a 40% deposit, and with the average asking price for a
house in Westhill now over £275,000 and nearly £300,000 in
Banchory, it is clear that very few people can raise the
deposit necessary to get on to the property ladder. This is
even more unachievable for young couples with families and
it is little wonder that so many people are frustrated when
their hard earned taxes were used to bail out the banks in
the first place."
"If we want to encourage to get on to the
housing ladder, which is so important to the future of our
people and the economy, then it is clear that those with a
good credit rating and can afford the repayments should not
be asked to find deposits that are out of reach to the point
of being punitive."
Mr Johnstone concluded "Home ownership
remains the aspiration of many people, and the banks and
building societies should acknowledge the important role
that their institutions play in fuelling the kind of
successful economy that we want for the north east and the
UK as a whole."
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