photo credit: lollerkeet
The UK’s real estate market is now seeing an increase in approved mortgages, but loan levels are still way below last year, new figures reveal.
Pressure has been brought to bear on some of Britain’s biggest banks recently to lower interest rates and provide more credit.
Home buyers have struggled as lenders, including investment property loan specialists, tighten their belts.
Statistics from the Council of Mortgage Lenders (CML) show there were 39,900 home buying loans in October, worth £5.5 billion.
This is 14 per cent higher in terms of volume compared to September, and a ten per cent value increase, but represents an yearly fall of 52 per cent in volume and 57 per cent in value.
CML director general Michael Coogan said:
“We believe the government urgently needs to review the cumulative effect of the approach it has taken in the recapitalisation process on large lenders’ willingness and capacity to lend.
“Ultimately, the response of each lender – whether on commitments to follow base rate moves or to finance new business in the future – will depend on its access to, and the price of, its funding.”
He added problems were being caused because banks face too much pressure on different areas, including keeping savings rates high and being lenient with borrowers who are behind on repayments.
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