Homebuyers become ‘prisoners in their own property’ – Telegraph Blogs

Homebuyers become ‘prisoners in their own property’ – Telegraph Blogs

Falling house prices are not the only reason rising numbers of homebuyers have become “prisoners in their own property” as banks’ and building societies’ reluctance to lend after the credit crunch prevent many moving home.
Most mortgages marketed in recent years are described as portable – that is, the loan can be secured to a different property with the lender’s consent. In theory, this should enable people moving home to retain advantageous fixed interest rates and avoid early redemption charges. In practice, even where the new property costs less or a lower loan to value (LTV) ratio is required, some lenders are refusing to port mortgages as they seek to reduce risk.