Lack of mortgages 'has left gap in the market'

Date:Tuesday 31st March 2009
Author: Max Freedman

The lack of home loans currently being offered has left a gap in the market, it has been suggested.

Sarah Robson of the Council of Mortgage Lenders (CML) said that the efforts of some potential homebuyers to secure mortgages are being thwarted by a lack of available credit.

She made her comments in the wake of CML figures which indicated that the number of home loans completed in January 2009 was down by 28 per cent compared with December 2008.

Ms Robson stated: "There is a gap in the market in the ability to supply mortgages at the moment to meet the demand as a result of the withdrawal of many lenders."

According to the expert, government measures to encourage lenders to increase the supply of credit are not going to "plug the gap" completely.

She added that the CML does not expect to see an upturn in the availability of home loans until later on this year.