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Mortgage Lending drops to lowest level for a year More bad news for Home Buyers and Sellers as Mortgage lending has fallen to its lowest level for a year.

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Mortgage Lending drops to lowest level for a year

May 23, 2012 at 4:46 PM

More bad news for Home Buyers and Sellers as Mortgage lending has fallen to its lowest level for a year.

The recent tax concession for first-time buyers (FTB’s) has finished now and this probably has not helped. The UK’s Council of Mortgage Lenders (CML) says that only £10.2 billion worth of mortgages were agreed in April 2012 a drop of very nearly a fifth.

With the uncertainty of the “Eurozone crisis” and UK lenders again making their lending criteria even stricter it’s getting harder and harder to get a mortgage approved.  

Lenders like Santander are raising the amount of deposit needed by people still further so that the average FTB is finding it nearly impossible to raise a big enough deposit to get on the property ladder.

We all know what happens to the housing market when the number of first time buyers dries up, the whole market grinds to a halt.

If you wish to sell your million pound mansion the person buying it will probably be selling to someone else who is also looking to move up the property ladder. But the whole thing rests on the strength of the bottom rung of the ladder.

Without FTB’s buying a first home there is no chain and the entire market grinds to a halt.



Tags: Mortgage Lending Criteria Mortgage Lending
Category: First Time Buyers

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