CML: Tightening of mortgage lending criteria abating

Date:Friday 10th July 2009
Author: Max Freedman

The tightening of mortgage lending criteria seen recently in the UK appears to be easing, the Council of Mortgage Lenders (CML) has claimed.

According to the organisation, since reaching a peak of 25 per cent in February, the average first-time buyer deposit has remained unchanged.

Economist at the CML Paul Samter said: "The trend of tightening lending criteria seems to have subsided and we may see a modest easing in these measures over the summer, which will help some borrowers."

Access to mortgage finance will remain constrained, however, as a result of a fall in the number of active lenders and the shortage of funding available to them, the expert added.

He went on to say that parents remain an important source of help among people seeking to get a foot on to the property ladder, with some home loan deals reflecting this.

Representing the interests of the housing and mortgage markets, the CML claims that its members account for around 98 per cent of residential mortgage lending in the UK.