Mortgage market 'may be at turning point'

Date:Wednesday 3rd June 2009
Author: Max Freedman

The UK mortgage market may be at a turning point, with brokers predicting an increase in the number of first-time buyers over the next 18 months.

According to the Intermediary Mortgages Lenders Association (IMLA), brokers have identified a number of tentative early signs that the mortgage market is beginning to bounce back in spite of the recession.

IMLA executive director Peter Williams stated that while the mortgage industry is "not out of the woods yet", consumer confidence "is beginning to pick up" and modest improvements have already been identified in the market.

He explained: "Further work still needs to be done to improve availability of mortgages in the sector, however, for example by way of government initiatives to support specialist lenders and the full spectrum of building societies."

Yesterday (June 2nd), head of mortgage policy at the Building Societies Association Paul Broadhead pointed out that the number of building society mortgage approvals increased by 14 per cent between March and April 2009.