In the last few years there have been big changes within the mortgage market. As the property bubble got bigger, lenders were willing to offer ever more risky deals to customers, such as 100% mortgages.

When the banking crisis occurred and the housing bubble burst, not only were these special deals removed from the market, so were most of the tracker mortgages and other potentially cheap deals which were formerly available.

Now that the economy is a bit more stable, banks and building societies are lending again, if at a far more restrained level than they were in the boom years – there is still no sight of those 100% mortgages of old.

So what will happen for the future of mortgages?

As time goes on, the needs of borrowers are changing, so we can expect lenders to respond to this by developing some innovative new mortgage products over the next few years.

Flexible mortgages

In response to the growing number of self-employed people, mortgage experts are predicting a range of more flexible mortgages. Features of these flexible mortgages may include flexible repayment options such as longer mortgage terms, payment holidays and other options to fit in with the changing lifestyle needs of the modern homeowner.

Bank of mum and dad

Also, families may find themselves being far more involved in one another’s Cialis Jelly finances as first time buyers take advantage of their parents’ assets in order to afford a home of their own. The ‘bank of mum and dad’ has been a common term to describe how parents have helped their children buy properties which would otherwise be out of reach, and according to experts this trend is set to continue. In future, lenders may even start to encourage this trend further by adding incentives for parents to assist their children in buying a property, something which has not happened up until now.

Super prime borrowers

As time goes on, risk averse lenders will compete to win the business of super prime borrowers. Super prime borrowers are those with a deposit higher than 25% and a perfect credit history – the ideal type of customer to lend to as there is a very low risk of them defaulting on payments. Lenders will also want to know more about the type of property they are investing in, so the condition of the property and its potential to grow in value will be assessed further, say experts.

Savings products

With first time buyers struggling to save the necessary deposits for the new mortgage market, and no sign of those 100% mortgages returning, savings schemes designed for them in particular will appear in order to create a suitable environment for desirable borrowers to grow. The government may also get involved by offering increased tax-free savings Kamagra jelly allowances to help first-time buyers to build the necessary deposit.

New lenders

Innovations in mortgages are likely to come from new lenders like Tesco and Boots, who have both been considering moving into the mortgage market in the near future. New, non-typical lenders may be bringing attractive new products and spark changes.

Author Bio: At Credit Choices you can find out more about 100% mortgages and compare mortgage deals online. Whatever your individual mortgage needs, we can help you find the best deal.

Category: Finance/Mortgage
Keywords: mortgages,100% mortgages,mortgage,future of mortgages