Firstrung rep claims there is a scarcity of mortgages

Date:Friday 22nd October 2010
Author: Susanna Kavka

There are not enough mortgage deals, an expert from Firstrung has suggested.

Chief executive of the organisation Paul Holmes claimed the lack of home finance options on the market is down to the lenders.

He said that market intelligence is telling them the housing industry is set to fall further and this is stopping them from wanting to invest too much money into it.

"People can't afford their deposits and houses are too expensive. That has to change. It is going to be painful for everybody," Mr Holmes remarked.

In his opinion, properties are currently over-valued, since homes should cost about 3.5 times a person's wage.

With the average salary in the UK standing at £25,000, this means houses should be going for about £90,000 but the current figure is around £160,000.

The issue is hurting first-time buyers, many of whom have strong aspirations to own a home, according to recent research by Genworth Financial.