July mortgage market subdued

Demand for mortgages in July continued to be weak, according to the latest regulated mortgage survey by the Council of Mortgage Lenders CML.

July is traditionally a very strong month in the mortgage market but figures revealed that despite a slight increase from June the market remained very weak.

There were 56,000 loans for house purchases in July which is an increase of 4,000 from the 52,000 loans in June but merely reflects the expected seasonal rise in activity and not a recovery of the mortgage market.

First-time buyers put down an average deposit of 24 per cent in July, which is an increase of three per cent from average rates in April and May, and may be responsible for first-time buyers only representing 34 per cent of the market in July.

CML economist Paul Samter said that the lending criteria has remained tight over the month as there is a great deal of caution on the part of both borrowers and lenders due to the uncertain economic climate.

Meanwhile Defaqto has announced that one in four mortgages, with the best mortgage rates, are only available to lenders' current customers as a reward for their loyalty.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-09-13 12:24:59 © Moneyextra.com