Borrowers 'being restrained from taking out mortgages'

Date:Thursday 17th September 2009
Author: Max Freedman

Borrowers are being restrained in their attempts to take out a mortgage by two key obstacles, according to an industry insider.

Nicholas Leeming, director of propertyfinder.com, pointed out that the short supply of properties on the market right now is affecting the lending climate.

The other issue that needs to be resolved, noted Mr Leeming, is that homeowners and potential buyers are being restricted from getting finance to make house purchases by the demanding conditions of lenders.

He said: "We can expect transaction levels to rise in the coming months, but there are still obstacles to a full scale revival in housing market activity."

Mr Leeming predicted that there will be sustained growth in mortgage approvals through the winter, but highlighted the importance of a supply of credit and a demand for property from buyers.

These comments were made in response to the publication of July lending figures by the Council of Mortgage Lenders, which indicated that mortgage approvals had seen their first year-on-year rise since the beginning of 2007.