High Loan To Value Mortgages Remain Elusive
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High Loan to Value Mortgages Remain Elusive

Getting loans has especially been elusive since banks suffered major crisis over the last years. This phenomenon has greatly affected countless people getting loans in the Philippines. Fearing the comeback of major banking crisis, majority of the banks and lenders that offer loans in the Philippines started focusing on lending money to just those profitable and lucrative clients more, instead of entertaining all home buyers and borrowers possible.

The good news is that researchers have discovered advantages on that critical banking phenomenon. For those home buyers and borrowers who are interested in borrowing less than 50% of the property’s actual value, here is good news for you: high loan to value mortgages raised!

Research says mortgages having an amount of 60% loan to value have majorly boomed. This is a positive change for many lenders and banking companies all over nations. Way back 6 years ago, before the banking industry suffered its major crisis, the average amount of mortgage being lent to borrowers is about 90% or more. 60% is way lesser than the past’s 90% norm, but it is still better than nothing. Many banks and lenders prefer to stick with this kind of loan agreement since it’s got lower risks and greater advantage on their part. Nonetheless, banks and lenders stay vigilant in lending mortgages as they’re still alarmed on the last almost-global banking crisis.

Mortgage deals for home buyers and borrowers have really become stagnated, even when lenders and banks offer higher percent loan to values. However, many banks and lenders have found an effective way in solving this phenomenal problem somehow. They’ve offered plenty of mortgage deals for a large deposit of 40% or more. Ever since this process has been made effective for almost all banking companies, lenders and banks have started offering affordable rates for a good quality of larger mortgage deals. Many lenders have also approved to this means of borrowing since it takes lesser risks.

Banking companies that cater loans in the Philippines not only focus on mainstream lending companies inside the country, but also outside. There are still a lot of mortgage deals available like private banks in United Kingdom and more. The hottest mortgage deals at present are those clients and borrowers that need lower loan to values.

One of the factors that increase the choice of deals of many clients and borrowers is the government’s funds for lending. Researchers believe that the main goal of the government funding for lending is not to focus on the right and responsible borrower, but on those who are looking for 90% loan to value.

As said, many banks, lenders, and loans in the Philippines have been focusing more on lending money to the more profitable home buyers and borrowers that have bigger net worth. This case has been greatly affecting people globally as many borrowers who have lower net worth don’t get the same opportunity and customer service quality as those profitable clients. Plus, choosing the right loan is not just the only key for a quality loan benefit. Almost all lending companies have been so keen in entertaining and serving the best possible client. Even those private banks are becoming considerably part of this inequitable customer services.

Furthermore, even those who have quite higher net worth are not getting the same quality services as those beneficial clients. Lenders and banks have been thoroughly studying every client that they have on how beneficial they can be to the company.

The banking crisis from years ago can still be felt all around the globe such as debt-loaded homes, low growth, and widespread unemployment and underemployment. Not just that, home buyers and borrowers don’t get the same kind of quality customer service as well. Luckily, there are still several private lenders and banking companies offering loans in the Philippines that are brave enough to take risks in lending loans to both individuals having high and low net worth. Also, several mortgage brokers and lenders have tried and developed partnerships with private banks outside the country.

Besides, this phenomenon has been advantageous to people as their interest rate and monthly payment decreases, resulting on a better cash-flow.


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