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Banks’ refusal to lend provokes public anger

Banks’ refusal to lend provokes public anger

Category: Mortgages

Updated: 09/07/2009
First Published: 09/07/2009

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 It is now over 6 months old so the content may be out of date.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 UK public is 'furious' with banks and building societies for their failure to up lend, thus preventing consumers from owning their own homes.

A poll commissioned by the National Association of Estate Agents (NAEA) has revealed that of 1,800 people questioned, almost six in ten (58 per cent) think that banks should be lending more to help the country out of the property slump.

The difficulty potential home owners are currently having accessing the market is illustrated by almost a quarter of people (22.5 per cent) claiming they do not qualify for any mortgage deal across the whole sector.

Fifty six per cent said a combination of relaxed restrictions and lower deposit requirements would make the chances of them buying a property more likely.

The chief executive of the NAEA, Peter Bolton King, has warned that banks ran the risk of slowing market recovery and said that the Government should be advising them to open up lending.

"We cannot let the banks convince us that shutting up shop when it comes to mortgage lending is a responsible move," he commented.

"The Government must do more to put pressure on those banks that are refusing to lend, while highlighting those banks that are easing restrictions to get the economy moving again.

"It is time to accept that responsible lending to responsible people is necessary for the country."

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