Will the mortgage market ease next year?

Over recent months there have been mixed reports and opinions with regards to whether the mortgage market in the UK is likely to ease up next year, and whether people will stand a greater chance of being able to get a mortgage having experienced difficulties for the past couple of years since the global financial crisis and recession swept across the UK.

Some believe that the worst is over when it comes to the property and mortgage markets, and that whilst the market remains challenging after the chaos that the financial meltdown has caused lenders are starting become less stringent and are more relaxed over their lending rules. This comes after several years of severe restrictions that caused a mortgage drought in the UK and in other countries around the world.

However, despite the optimism of some industry officials there are many others that believe that the market will become even more challenging, with the coalition government cutbacks and concerns over jobs likely to affect the market. Many experts believe that people will find it increasingly difficult to get mortgage finance over the course of next year, and that it could be some time before things start to ease off and mortgage lending becomes more relaxed.

One industry expert said: “I don’t believe things will get any easier when it comes to mortgage finance in 2011, and if anything first time buyers could find things have become even more difficult as the banks struggle to cope with having to repay bailout money to the government.” She added: “First time buyers also still have the added pressure of having to raise larger deposits in order to get affordable mortgage deals, as well as the threat of interest rate increases next year that could make repayments less affordable.”

Tags: mortgage finance, mortgage lending, industry expert, bailout money, world, finance, Many experts