Mortgage lenders 'gaining confidence'

Date:Tuesday 11th August 2009
Author: Susanna Kavka

Mortgage lenders are gaining confidence, according to one industry practitioner.

Commenting on the issue, Peter Cowell, broker at Click n go Mortgages, claimed that recent reports of house price increases have had a positive impact on the products offered by banks and building societies.

For example, lenders seem to be increasing their loan-to-value criteria, he said.

Mr Cowell added: "The recent figures that Nationwide and Halifax have released have given a bit more confidence because we have had three increases in prices in the last three months."

He went on to suggest that the mortgage market is "looking like a very positive situation at the moment".

However, it is still hard for first-time buyers who lack substantial deposits to get on to the property ladder, Mr Cowell said.

According to figures released recently by the Bank of England, new mortgage approvals increased for the fifth consecutive month in June, with total net lending for dwellings rising by 0.3 per cent over the month.