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Home loans are not going to become more readily available yet

April 2, 2009 by admin  
Filed under News, News-Mortgages

1 Comment

Industry experts have recently confirmed what most people have already worked out for themselves – that the availability of home loans in the UK is not likely to increase anytime soon.

Officials have stated that it is very unlikely that home loans will become more readily available in the near future, despite various government initiatives aimed at helping people to get onto the property ladder and to get banks to start lending again.

The news is bleak for the many homeowners that hoped to be able to realise their homeownership dreams at a time when both house prices and interest rates have plummeted. However, the restricted mortgage market has put a stop to the plans of many of those that were hoping that this was their chance to get onto the property ladder and get an affordable property and an affordable mortgage, with the base rate now down to just 0.5 percent, which is the lowest in history.

The Council of Mortgage Lenders, however, has said that mortgage lending is still extremely restricted, and due to the current financial climate and the recession many lenders are still being very cautious about who they will lend to.

An official from the CML said: “Mortgage lending activity continues to be very weak and while people are searching eagerly for some signs of recovery, it would be unrealistic to expect a meaningful revival in lending in coming months.”

Another industry official said: “The January lending figures are a joke. Enough is enough. It is time for the government to get the gloves off and force the banks to lend.”

It is also thought that some people may put of buying a property at the moment, because they want to see how much further house prices and interest rates will fall before taking the plunge.

Tags: council of mortgage lenders, official, Mortgages, market, availability, personal finance, mortgage deals, mortgage

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Comments

One Response to “Home loans are not going to become more readily available yet”
  1. Mrs T. Newton says:
    April 13, 2009 at 12:34 pm

    When will the banks start to realise that if they start lending again this will kick start the economy, most jobs/industry is reliant on the homeowners which then snowballs onto decorating, furnishing and all that goes with buying a home. Get real, you are ruining the lives of the average person on the street, the bankers still have their homes, let us have the chance to get on the housing ladder. Otherwise you will reap what you have sown if you do not act soon to save the worsening situation!

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