Mortgage deal approvals 'will increase over the next year'

Date:Thursday 27th August 2009
Author: Susanna Kavka

The number of mortgage deals being approved will rise over the next year because of increased consumer confidence, an industry insider has predicted.

Catherine Hearnden, director of MyMortgageDirect, commented that as potential borrowers see less people losing their jobs around them, it may inspire them to apply for a mortgage deal.

She also pointed out that some people may believe that the market has hit rock bottom, so now is the time to invest in property and bank on house prices going up again.

"The more property stuff that is reported and comes out, the more people will take heart from that and take their plans off hold," she said.

However, Ms Hearnden felt the loan-to-value ratio needs to be reviewed by lenders, as the situation at the moment could cause a problem in the mortgage market "for a long time to come".

Gross mortgage lending was up 26 per cent in July compared to June reaching an estimated £16 billion, according to the Council of Mortgage Lending.