Securing mortgage deals is still difficult, says CML

Date:Wednesday 26th August 2009
Author: Max Freedman

First-time buyers are still finding it difficult to secure mortgage deals despite a drop in house prices, says the Council of Mortgage Lenders (CML).

Bernard Clarke, a spokesperson for the organisation, believes that lower asking prices will encourage more people to buy a home, but that there are a number of obstacles standing in their way.

He highlights the worries people have about their job security and the size of deposits first-time buyers are being asked to pay as some of the key factors that could stop them getting on the property ladder.

"The simple truth is that lower prices will encourage buyers but they will be constrained by things," he says.

He also points out that it is not appropriate to encourage more people into the property market, since that decision should be made according to each person's circumstances.

Mr Clarke made his comments following the release of the Rightmove House Price Index this month, which showed that average asking price for a house had fallen by 2.2 per cent since July.