UK mortgage market 'declining'

Date:Wednesday 8th July 2009
Author: Max Freedman

The mortgage market in the UK is in a downward spiral, according to a price comparison site.

Commenting on the issue, said that the number of new home loans available to first-time buyers stands at around 1,195.

Head of mortgages at the organisation Louise Cuming said: "Despite all the recent initiatives from the government and Bank of England, the lack of credit is an ongoing problem."

This will continue to hinder the property market and so, until more mortgages become available, house price growth will remain "muted at best", she claimed.

Ms Cuming added that further falls are possible and many borrowers will continue to struggle in their attempts to secure home loans.

The expert concluded by suggesting that it is doubtful that the number of mortgage products will rise significantly "any time soon".

Recently, Alan Ward, chairman at the Residential Landlords Association, said that the range of buy-to-let mortgages available to property investors remains restricted.