Banks must lend to aid mortgage market, expert says
Banks urged to offer more mortgages
Wednesday, 03, Mar 2010 12:00
Mortgages must be offered by banks to aid the falling market, a finance expert has said.
There is pressure on banks to lend and they must do so, said Catherine Hearnden, director of financial advice firm MyMortgageDirect.
She pointed out that increased loan-to-value mortgages are being offered, but buyers still require a deposit and face higher interest rates.
Homebuyers must continue to be sensible with their finances and assess mortgage options carefully, the expert continued.
Figures from the British Bankers' Association show that mortgage lending in January was relatively weak, with the winter weather blamed for the drop.
Some 35,000 new mortgages were taken out, compared to 46,000 in December.
The figure could also have been a reflection of the changes to stamp duty that came into effect at the beginning of 2010, meaning buyers made the most of the relief at the end of 2009.