Mortgage Lending Remains Stagnant

Mortgage lending in October remained unchanged from September at £12.4bn and was the lowest October figure for ten years according to the Council of Mortgage Lenders. Continued tough lending criteria and economic uncertainty in light of the recent spending review are believed to be the main factors.

Brian Murphy of the Mortgage Advice Bureau proclaims “Borrowers are nervous, even more so since the Spending Review and confirmation of some half a million public sector job losses" he said" This fear for their personal circumstances has certainly contributed towards the drop-off in mortgage applications”. As lenders continue to demand significant deposits from buyers, demand for rented properties is continuing to grow, which has led to rental prices increasing much faster than mortgage repayments. The longer mortgage lending remains depressed and the more buoyant the rental is as a result, then the more likely it is that demand for debt advice will increase.

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