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Expert warns mortgage market faces bumpy 2010
03/11/09
Edited by Andy Jowett. Despite mortgage approvals hitting their highest level in 18 months during September, increases in lending for residential property remain "very small" and there needs to be a "bigger step" in transactions if the market is to recover, an expert has claimed.
Andy Pratt, chief operating officer at independent mortgage broker Alexander Hall, said the combination of a lack of properties for sale and limited funding for lenders will mean the mortgage market will be "pretty stuck for next year".
At present, he noted, many residential property owners are reluctant to sell in the current market and until these people feel more confident about moving, there will be a lack of houses to buy for those looking to get on the property ladder for the first time.
Even if there was a rush of new stock for sale, Mr. Pratt warned that the continuing restriction of mortgage finance would prevent banks and building societies from meeting demand.
According to figures from the Bank of England, there were 56,215 loans approved for residential property purchase during September, compared to a previous six-month average of 48,221 loans.
