Homes 'being left empty due to lack of mortgage lending'

Date:Monday 11th May 2009
Author: Max Freedman

Affordable homes in the UK are being left empty as a result of a lack of mortgage lending, it has been suggested.

According to Westmorland and Lonsdale MP Tim Farron, new houses may go unsold because of the large deposits currently being required by many banks and building societies, the Westmorland Gazette reports.

According to the politician, the government should step in to assist first-time buyers (FTBs).

He said: "With the taxpayer now holding a majority stake in many of the nation's biggest lenders, the government is in position to step [in] and instruct the mortgage lenders to lend to the people who need credit the most."

Mr Farron has tabled an Early Day Motion in the House of Commons calling on the government to assist FTBs to secure mortgages on new homes.

Meanwhile, Catherine Hearnden, director at MyMortgageDirect, recently advised people to seek advice before committing to home loans so that they ensure they get the best deals.