Finding a loan may get tougher

Lenders will tighten their policies in the wake of the US sub-prime crisis according to the chairman of Wizard Home Loans, Mark Bouris, warning that it was going to get harder for borrowers to get loans at 100 per cent and 85 per cent of property value. “There have been a lot of bad lending practices in this country and the US, but on the other side there are also borrowers around who were happy to take as much money as they possibly could and buy things which they knew, deep down, they couldn't afford,” he said. Mr Bouris said that it was politically convenient to blame lenders for the sub-prime fallout but that borrowers had to accept some of the responsibility as well.

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