The council of mortgage lenders (CML) has defended mortgage loans with large repayments . The director general of the CML said that mortgages set at five or even seven times borrower salary are an essential part of the market.
Taking an opposite view, housing expert professor Steve Wilcox reportedly commented: "We are now in a low inflation environment, which means when you go into a high mortgage in year one of your mortgage career, it remains a high proportion of your earned income for much longer than used to be the case when earnings were going up at 10 per cent a year rather than four per cent or five per cent a year. Over your mortgage career as a homeowner people are far more strapped now than they were in the past."
Michael Coogan said that high repayment mortgages for lower salary borrowers were pitched to bring mortgages more affordable. Coogan reportedly commented: "Those are measures designed to try and bring down the cost per month, and if you look at it in the context of what are the housing choices of first time buyers - are they able to get housing rental at a cheap rate ? Is the mortgage actually going to be cheaper for them than other housing options in other circumstances?"
Coogan reportedly concluded: "Not everyone will get a five, six or seven [times] income multiple, and it is important that the customers don't over-extend themselves. It is for the borrowers also to take reasoned view of their prospects."
CML come to aid of big mortgages
Mortgage Quote Line
0845 108 0505
CML come to aid of big mortgages
Wed, 27 Jun 2007
Recommended links
Your one-stop mortgage shopMortgage information for first time buyers
Mortgage Calculator
How Interest Rates affect Mortgage Repayments
Mortgage enquiry form
CML say interest-only mortgage no problem
CML: First time buyers dwindling in Wales
First-time buyers need greater flexibility, says CML
CML: Mortgage lenders should work with brokers
First-time buyer specialist criticises CML
Buy-to-let market reaches record figures, says CML
CML forecast growth in adverse credit mortgage market
CML: Mortgage lending still rising
CML figures encouraging, mortgage lender says
New CML NI director plans to aid first-time buyers
Parental help needed to become first-time buyers, CML survey shows
CML: More people find a remortgage in August
| mortgages news |
|---|
| Yorkshire Building Society makes mortgage more accessible - Thu, 02 Sep 2010 |
| Lloyds TSB launches new fixed-rate mortgage - Thu, 02 Sep 2010 |
| Skipton launches new mortgage range - Wed, 01 Sep 2010 |
| More News |
Mortgage Rates by Lender 
Worried about Mortgage Repayments?
- Join our petition to Government to bail out burdened individuals, not just banks.
Free Mortgage Quote
Mortgages in Scotland
Equity Release
Switching Mortgages
Home Reversion Plans
Commercial Mortgages Arrears & CCJs?
Remortgages- Sub prime mortgages
- Arrears, CCJs
- Self certification
- Debt consolidation
Protect Your Mortgage