Primecover News 18th July 2008

Mortgage Market. A recovery in the mortgage market is still not within sight according to the council of mortgage lenders (CML). The figures released by the CML showed the number of loans for home purchases at 52,700 in May.

The number of loans to first-time buyers rose by 4 per cent from April to 19,200 in May, but was 41 per cent lower than the same month in 2007.The figures also revealed a steep decline in the number of people re-mortgaging in May-down 14 per cent on the previous months and 23 per cent lower year-on-year. Recent mortgage approvals data from the bank of England indicates that the number of loans for house purchases will fall further in coming months.

The squeeze on the availability of mortgages has cut the number of people re-mortgaging and waiting to move house. Consequently demand for homes has fallen, with some regions seeing more of a slowdown than others in the housing market.Many first-time buyers are left unable to qualify for a loan, and many more have been left with no choice but to suffer cripplingly high mortgages cost. Housing transactions have stalled and house building has been suspended storing up more trouble for the future.

The first-time buyer is an important equation in bringing about an up-turn in the property market and the sooner mortgage products can once again become widely available to them, the UK whole economy will benefit.

Article published on: 18/07/2008

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