Comment on the CML Regulated mortgage survey
Comment - CML Regulated mortgage survey - Eric Stoclet
Eric Stoclet, chief executive at Crown Mortgage Management said: These mortgage lending figures indicate that the run up to Christmas will prove a far slower period for property sales this year than it was in 2009. Tight lending criteria are becoming an albatross for housing market. With total loans down 16% in the last 12 months, it is a wonder that we havent seen a more dramatic drop in house prices this year. We cannot expect cash buyers to continue to prop up the market. This drought in mortgage finance will force the government to tread very carefully as lenders have been restricted by their concern about the cost of repaying their bailout loans. The New Year looks set to usher in a prolonged winter-chill for the housing market as public sector cuts and a likely interest-rate rise will put a further squeeze on deposits. The only crumb of comfort for homebuyers is that the average LTV for first-time buyers has risen by 5% this year these kinds of margins can make all the difference to those with limited deposits, who rely most on the whims of mortgage lenders. Otherwise sadly todays results paint a rather bleak picture.