MyMortgageDirect says banks are unwilling to lend

Date:Friday 19th November 2010
Author: Susanna Kavka

Lenders are currently very unwilling to hand out money, according to an expert from MyMortgageDirect.

Director of the independent financial advice company Catherine Hearnden claimed she has not seen a situation like the current one in "20-odd years".

She suggested lenders are making it difficult for people to prove their income and borrow money.

"They seem more unwilling to lend than they were six months ago, which I find amazing," said Ms Hearnden.

In her opinion, the size of the deposit required to take out a mortgage has improved, as earlier this year people were wondering whether banks would ever offer higher than 75 per cent loan to value (LTV).

However, she added: "They might be doing higher LTVs, but their willingness to give a mortgage offer has declined."

The expert made her remarks in response to figures from the Council of Mortgage Lenders indicating gross mortgage lending stood at £12.4 billion in October, which is the lowest total for the month since 2000.