Mortgage situation 'might persuade more to consider flats to rent in London'
A greater number could be considering flats to rent in London amid confusion about the state of home loans figures published by the Council of Mortgage Lenders (CML).
According to Paul Holmes, chief executive of Firstrung, statistics suggesting that borrowers buying in May saw interest payments account for the lowest proportion of their income did not tell the whole story, a point that might push people to look for flats to rent in London.
He said that the CML is using an "inaccurate metric" to justify that all is well with the home loans market by latching on to one specific part of that measurement and solely talking the interest-only element of deals on offer to borrowers.
"That is not the key factor in any mortgage. The key factor is how you are going to pay this debt off in 25 years," Mr Holmes added.
Earlier this week, the CML revealed that lending for purchase rose for the 11th consecutive month, but that this figure is likely to drop as a result of challenging economic conditions and government spending cuts.
By Chris Price
Published 16th July, 2010
© 2010 Estates IT Limited
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Will more people be encouraged to look for flats in London after an expert's suggestion that the Council of Mortgage Lenders' analysis about a healthier market is incorrect?