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Credit crunch 'not affecting high-value mortgages'
Customers looking for high-value mortgages have not been adversely affected by the current credit crunch, according to independent financial adviser (IFA) firm Bestinvest.
The company's mortgage manager, Peter O'Donovan, has said that the issue is more one of affordability anyway, rather than a problem generated by the recent credit crunch.
Mr O'Donovan said: "The lenders' criteria for these types of mortgages has been quite strict anyway. So it's more [an issue of], with the higher rates, is it affordable?"
He also suggested that people on a fixed-rate will not be too badly affected either, due to the fact that by the time they emerge from the promotional side of their mortgage, rates may have been cut again.
As most people opting for a high-value mortgage choose a fixed-rate product, the IFA also said that the rising interest rates do not necessarily hit higher value mortgages harder.
In July, the Council of Mortgage Lenders recorded more than 3,000 cases of people opting for a mortgage of £250,000 to £500,000.