More help urged for mortgage market - Mortgages - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

More help urged for mortgage market

More help urged for mortgage market

Category: Mortgages

Updated: 21/05/2010
First Published: 21/05/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The new government has been urged to address the funding issues in the mortgage market after lending dropped to its lowest April total since 2000.

The latest data from the Council of Mortgage Lenders (CML) showed gross mortgage lending declined to an estimated £10.2 billion last month, 12% lower than in March and 1% down on April last year.

Signs in recent months have pointed to an increase in the number of mortgage deals on the market, with more higher loan-to-value mortgages becoming available and mortgage rates falling slightly.

However, the CML said it remained a difficult market, particularly for first time buyers without large deposits, and lenders who continue to face funding challenges.

The imminent squeeze on public finances is expected to drag on the speed of the recovery, and in turn slow the pick up in the housing market.

More positive, however, is the expectation of support for the market, after the Bank of England's welcome of plans to address the deficit in the public finances seemingly paved the way for interest rates to be kept lower for longer.

"We welcome signs in the coalition agreement that some housing priorities are on the government's radar," said CML director general, Michael Coogan. "But we still do not know how the incoming government plans to address the funding gap looming over the next few years in the mortgage market.

"It is important that the new government grasps this nettle."

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.
 
Close