'No significant recovery in mortgage lending' may lead people to find flats to rent in London
There may be no significant recovery in mortgage lending for the rest of the year, it has been suggested, which could lead to more people choosing to find flats to rent in London.
Bernard Clarke, spokesman at the Council of Mortgage Lenders (CML), said the impact of the Comprehensive Spending Review might reinforce the cautious stance already adopted by lenders in the current economic climate.
He stated the latest figures showing the number of mortgage approvals has dropped falls in line with the CML's view that the amount of lending to people looking to purchase a property will not increase before the start of the new year.
"I think the best options will remain available only to the lowest risk customers and those with a reasonable amount of equity in their property," he added.
Earlier this month, the CML revealed 25 per cent of loans were accounted for by remortgaging activity, the lowest percentage in over ten years.
In August, there were 51,600 home purchase loans awarded worth a combined total of £7.7 billion, which represented an eight per cent fall compared to July.
Posted by Andy Britten
Published 26th October, 2010
© 2010 Estates IT Limited
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