Mortgage lending 'will remain weak'
Mortgage funding has been predicted to remain restricted throughout 2009.
Those hoping to live in London may find that buying is an increasingly difficult option, as the Council of Mortgage Lenders (CML) has suggested that activity will remain weak.
Director general of the body Michael Coogan has stated that the flow of lending will continue to be restricted unless the government intervenes.
However, he noted that Labour is "facing the difficult decision of how to share out limited resources to help small businesses as well as the mortgage market's existing borrowers in difficulty and prospective borrowers shut out of the market".
Mr Coogan's comments followed CML findings that first-time buyers typically paid 18.2 per cent of their income out in interest payments in November.
In addition, the average person purchasing their first home had to find a deposit of 18 per cent - the largest level in the study's 35 years.
Figures released by Nationwide recently showed that house prices in the UK fell by nearly 16 per cent in 2008 - meaning those who bought property may face negative equity.
Published 15th January, 2009
© 2009 Estates IT Limited
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Mortgage funding has been predicted to remain restricted throughout 2009.