Purchase mortgages break 60% barrier, reports John Charcol

Date:Thursday 26th August 2010
Author: Max Freedman

A John Charcol representative has highlighted how the proportion of mortgages for purchases broke the 60 per cent barrier in July.

Drew Wotherspoon, director of marketing at the company, suggested that these figures would appear to go against the notion that the UK is set for a double dip recession and a correction in the housing market.

"The last few years have taught us to expect anything, but a further large drop in prices looks very unlikely, unless the FSA's proposed rules on affordability are implemented," he said.

Mr Wotherspoon pointed out that the rules of supply and demand imply that a limited stock of new properties in the country is likely to lead to a shortage of supply in the housing market.

This month, John Charcol spokesperson Ray Boulger claimed that borrowers are currently being rejected by mortgage providers at record rates and people are being left wondering where to turn to.