The Council of Mortgage Lenders (CML) has stated that the future of the UK mortgages market is ‘difficult to call’.
According to CML, the number of mortgages taken out for house purchases in September was down 2% from August, standing at 48,200, and was 3% higher than in September 2010.
Some lenders suggest that the increase in inter-bank lending charges has led to a rise in the cost of loans. This follows in the wake of the Eurozone crisis, which has dented banks’ lending confidence.
Paul Smee, the director general of CML, said that ‘although both house purchase and remortgage loans experienced a small drop in September, the overall market to date shows a stable picture....however, the backdrop of global and domestic instability makes the future more difficult to call.’
Difficulties facing first-time buyers continue, with an average deposit sitting at 20% of a home’s value. The business group CBI has stressed the need for more assistance for potential first-time buyers, including borrowing from their pension pot.
Mortgage lending outlook uncertain, says CML - BBC News