·:[ Personal Finance and Global Economy ]:·
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It appears the Mortgage situation in the United States is beginning to be echoed by the mortgage situation in the United Kingdom as lenders mortgage experts are urging mortage seekers to act quickly because there are many changes on the horizon facing both homeowners and lenders alike. All around the world, mortgage providers are now becoming more careful to spread their inventory over a variety of mortgage products and competitive deals (theones that benefit consumers the most) are being pulled at short notice.

David Hollingworth, of London and Country Mortgages, said: “They are being much more careful about who they are lending to and how much business they take.”

Cheltenham & Gloucester will tell homebuyers today that they must put down a minimum deposit of 10% if they want one of it’s mortgages, as the clampdown on indiscriminate lending gathers pace. Meanwhile, Royal Bank of Scotland and NatWest are withdrawing from offering mortgages for more than 95% of a property’s value.

C&G - owned by Lloyds TSB - is one of the biggest mortgage providers to rein in its lending in response to the credit crunch. The change means that a typical first-time buyer in London will have to stump up almost £25,000 to obtain one of the company’s home loans.

RBS/NatWest has already pulled out of offering mortgages above 95% through brokers; after March 7 this will also apply to branch-based home loan applications.

UK borrowers and businesses are advised to to locate the best possible mortgage deals now and lock them in before they are hit hard by the by the credit crunch.