In another blow to prospective first-time home buyers and millions of home owners coming off a fixed-rate mortgage deal, First Direct has withdrawn mortgage offerings for new clients. Reuters reports that the withdrawal was needed to help process the overwhelming number of mortgage applications First Direct received after advertising relatively cheap rates.

The news portal quotes First Direct press officer, Rob Skinner, as saying that the withdrawal could last a few weeks in order to clear the administrative backlog, after they received five times the normal number of mortgage applications from home buyers.

According to financial information website, Moneyfacts, this follows an alarming trend by smaller building societies. Instead of increasing mortgage rates or tightening criteria for home buyers, they have been withdrawing their mortgage products from the market completely or restricting their mortgage lending to direct business or local areas.

They further report that more than two thousand residential and buy-to-let mortgage offers were withdrawn in March alone, with 19 mortgage lenders withdrawing their products and restricting criteria in only one day.

Mortgages cost a third of household income

The Daily Mail recently reported that mortgages already take up a third of household incomes. The worsening credit crunch will make home loans even more expensive for home buyers as lenders curb the supply of loans and hike up rates.

So what is the answer for homeowners coming off a deal and struggling to find a new mortgage solution? Property buying company, MPG Investments, offers the ideal solution in the form of Sell and Rent Back. Simply sell your house to MPG in only 7 days, save the cash or spend it however you please, and then rent your house from MPG at a market-related rental rate, for up to three years.

Make the property market slowdown someone else’s worry. Contact MPG now and sell your house in only 7 days!