Cost pressures for remortgagers 'might stay the same'

24/07/2009

Mortgage conditions are unlikely to get much easier for struggling households in the near future, a broker confirmed today.

New analysis from John Charcol said that an improvement to the funding supply was "difficult to see", with high street loan approval numbers still low.

The comments follow the release of new figures from UK banks, which showed that gross mortgage lending in June had fallen by 46 per cent from June 2008.

This in turn signals that families having difficulty with making their monthly mortgage costs are not being able to refinance their loans, tipping many closer towards repossession.

Ray Boulger, senior technical manager at John Charcol, said: "[There is] no doubt that activity in the property market has picked up quite a bit this year – although, of course, it is still at very low levels historically – the availability of mortgage finance hasn't improved much at all.

"It's difficult to see much improvement in the supply of funds over the next few months."

Lenders expect overall repossession numbers to rise from 40,000 last year to 65,000 in 2009.

Tags; Housing Debt and Bills, Young Family Finances,

• Share
• 
• 
• Store
• 
• Follow
•